Apple Offers iPhone NFC Chip Access to Apple Pay Rivals in EU
Apple has reportedly offered to open up the iPhone near-field communication (NFC) system that Apple Pay uses to other payment services, in a possible effort to forestall impending EU regulatory action.
In a brief report Tuesday, Reuters said that Apple has offered to let rivals access the NFC system in iPhones, but it is not yet clear what Apple's proposal involves. Banks have complained that Apple's exclusive access to the NFC contactless chip in its devices privileges Apple Pay over other payment systems.
In May 2022, the EU antitrust watchdog officially objected to Apple restricting rivals' access to its mobile tap-and-go technology, making it difficult for competitors to develop alternative mobile wallet services on Apple devices.
Apple Pay competitor PayPal and other rivals reportedly played a role in the EU's decision to target Apple with antitrust complaints about its mobile wallet. The company was said to have filed informal complaints about the way Apple restricts third-party apps from accessing the NFC capabilities of the iPhone, which led to the EC's Statement of Objections against Apple.
The European Commission will now likely seek feedback next month from rivals and customers before deciding whether to accept Apple's offer, according to people familiar with the matter who are cited in the report.
This is not the first time that Apple has faced criticism for restricting access to NFC on the iPhone. Australian banks back in 2017 wanted access to NFC in order to launch an alternative to Apple Pay, but they were not successful.
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