Apple said other companies would be allowed to access its contactless payments technology in Europe, after pressure from a four-year investigation by the EU regulator. Apple will be under such regulations until July 25, which will remain for ten years. This would likely bring more competition and choice for iPhone users.

Apple has decided to share the technology powering its tap-and-go payments with other corporations in Europe. Wednesday’s modification came after an extensive investigation by EU antitrust regulators dating back to 2020.

EU regulators had become concerned that Apple was making life difficult for competitors by denying them access to the tap-and-go payments system, which enabled consumers to pay for items just by tapping their iPhones. According to Margrethe Vestager, EU antitrust chief, Apple might have unfairly limited competition.

The Investigation

Back in 2020, the European Commission opened an antitrust investigation into how Apple handled its Apple Pay payment system. Precisely, it had concerns over both Apple’s set of rules for Apple Pay in apps and websites, as well as the tap-and-go technology itself. Relatedly, investigations were made on the grievances of firms that claimed Apple was not allowing other companies to have access to this technology.

What Apple Agreed to Do

In return, Apple agreed to commit to a variety of fixes. It agreed to open up the NFC technology—the tech powering the tap-and-go system—to other developers without charging extra fees. Apple also agreed to let users choose any wallet as their default payment wallet—not just Apple Pay. And Apple will also grant competing payment wallets access to core iPhone features, including Face ID.

Testing the Changes

Earlier this year, the European Commission put the promises to the test by calling for feedback. After reading the feedback received, it was ruled that Apple’s promises would fix competition issues. These changes are now legally binding for Apple, who is ordered to adhere to them no later than July 25, 2024. They will be valid for ten years.

Benefits for Everyone

Vestager said that these changes are conducive to non-discriminatory conditions that would be beneficial to competitors and customers alike. More firms will be able to offer their payment wallets, providing more choices to users. This should also lead to further innovation in mobile payments while maintaining transaction safety.

Apple’s Response

Apple has announced that it will provide a workaround for developers working in the European Economic Area to enable NFC contactless payments using iOS apps for things like car keys, transit tickets, hotel keys, and event tickets. It will do this through a system called Host Card Emulation. However, the company has said these changes won’t affect how Apple Pay or the Apple Wallet works.

Conclusion

Apple’s deal with EU regulators features a huge about-face on how it functions in Europe. Apple will now allow competitors to use its tap-and-go technology—another move that would foster innovation and more options for iPhone users. The result will ensure a much fairer marketplace for all.