Apple is making NFC technology more accessible in Europe

After lengthy discussions, Apple is on the cusp of making a major change in how it deploys near-field communication (NFC) technology.

The European Commission is expected to adopt Apple's proposals to open its NFC system to competitors as early as next month, sources told Reuters. The move comes on the heels of adjustments made by Apple based on feedback from competitors and customers.

Technological progress and competitive advantages

Apple, known for its strict controls on what technologies and apps can be accessed on its devices, pledged earlier this year to allow other vendors access to its NFC technology on iPhones, iPads and other mobile devices. This access must be independent of Apple Pay or Apple Wallet and based on fair and non-discriminatory standards.

To comply with EU requirements and avoid potential penalty, Apple has added additional features to its offering. This includes the ability to set preferred payment apps as the default, access authentication features like FaceID and a suppression mechanism, and create a dispute resolution mechanism. These changes aim to enhance competition and improve the user experience for European customers.

Committee approval is expected

The European Commission had previously accused Apple of obstructing mobile wallet competition by excluding competitors from its NFC technology. With Apple's newfound openness, it is now expected to receive approval from the authorities by the summer of this year at the latest, with May being the most likely month for approval. However, the exact timeline remains dependent on Apple's final technical details.

The move is part of Apple's broader strategy to position itself in a difficult regulatory environment. The company was recently fined €1.84 billion, the first EU antitrust fine against Apple, for hindering competition with music streaming services like Spotify through restrictions on its App Store.

Conclusion

The upcoming decision could have far-reaching consequences for Europe's mobile payments landscape and shows that even the largest tech companies must respond to the EU's tough competition rules. This case will also serve as a precedent for future regulatory actions against other tech giants.

source: Reuters
Cover image: AI (Dall-e)