Apple’s Tap-And-Go May Break The Law
The European Commission has ruled in a preliminary finding that Apple may have broken competition law by preventing other companies from using its tap and go technology for contactless smartphone payments.
Apple denies the charge and will engage with the Commission to arrive at a solution. If the charges stick, Apple faces fines of a whopping 10 per cent of global turnover – a cool A$5.15 billion fine, based on last year’s earnings.
“We have indications that Apple restricted third-party access to key technology necessary to develop rival mobile wallet solutions on Apple’s devices,” EU Vice-President Margrethe Vestager said in a statement.
“We preliminarily found that Apple may have restricted competition, to the benefit of its own solution Apple Pay,” the EU official who is in charge of competition policy said.
This “leads to less innovation and less choice for consumers for mobile wallets on iPhones”.
Apple countered that its system was one of many payment options.
“We designed Apple Pay to provide an easy and secure way for users to digitally present their existing payment cards and for banks and other financial institutions to offer contactless payments for their customers,” the company said in a statement.
“We will continue to engage with the Commission to ensure European consumers have access to the payment option of their choice in a safe and secure environment.”