Apple Pay Faces Swiss Antitrust Investigation Over NFC Access

[MacRumors]

Switzerland's competition authority has launched a preliminary investigation into whether Apple's terms for granting third-party access to NFC technology on iPhones violate its antitrust laws.

The Secretariat of the Swiss Competition Commission opened the probe on December 10 to examine whether rival mobile payment apps can compete fairly with Apple Pay for contactless payments in stores.

Android devices freely allow third-parties to use NFC technology, but Apple only began allowing Swiss app developers to access its NFC interface in late 2024. The regulator is looking into whether the conditions differ from those Apple separately agreed to in the EU last year.

After pressure from the European Commission, Apple agreed in July 2024 to open NFC access across the European Union, of which Switzerland is not a member.

Switzerland's competition watchdog has been engaged in discussions with Apple since that time. The COMCO investigation is now gathering information from market participants to decide if Apple's Swiss-specific terms do in fact comply with local competition law.

Article Link: Apple Pay Faces Swiss Antitrust Investigation Over NFC Access

 

[CATiNTHESTORE]

Let's go Swiss!

 

[MAlbi]

It is nice to have more credit cards in one wallet and easily switch between them inside one app. It works now in Wallet. I do not get how this can help consumers more than this is done already. By Apple. Developers may benefit from this, this is good.

 

[Hajj.david]

I actually dont like this. What seems good "oh wow more choice" ends up being "You need to download our app to use our credit card nfc and get specialized ads!". Very very quickly.

 

[diego.caraballo]

I actually dont like this. What seems good "oh wow more choice" ends up being "You need to download our app to use our credit card nfc and get specialized ads!". Very very quickly.

Exactly. And tracking your data. That’s all about.
Germany is investigating if Apple is being fair to block tracking of third party advertisers. Crazy times in EU.

 

[Naraxus]

"Switzerland's competition authority has launched a preliminary investigation" ......to see if they can extort more money from a succesful American company under the guise of "fines".

 

[AppliedMicro]

Apple only began allowing Swiss app developers to access its NFC interface in late 2024. The regulator is looking into whether the conditions differ from those Apple separately agreed to in the EU last year.

Correction. They (seem to) know that they do differ from the EU conditions:

“The Secretariat is now conducting a preliminary investigation to determine whether the terms and conditions for granting access – which differ from those applicable in the EEA – comply with Swiss antitrust law”

https://www.esa.admin.ch/en/newnsb/egoLzxP2rT6G265nJvqnA

Without knowing what those conditions actually are, I suppose they follow Apple’s usual modus operandi of malicious compliance: Feigning compliance by intentionally setting a fee/commission structure that makes third-party usage economically non-viable.

It works now in Wallet. I do not get how this can help consumers more than this is done already

By costing less.

 

[AppliedMicro]

Germany is investigating if Apple is being fair to block tracking of third party advertisers

You got it wrong: they’re investigating why/how Apple applies different, more “lenient” rules and patterns/UI design than third parties are subject to.

Such as wording/dialogue encouraging users to opt in to being tracked that’s different from to themselves and their own tracking for advertising purposes.

The German antitrust authority don’t have a problem with it, as long as Apple applies the same rules to themselves as they do to their competitors.

 

[suisse]

Let's go Swiss!

i‘m here 😂

 

[suisse]

"Switzerland's competition authority has launched a preliminary investigation" ......to see if they can extort more money from a succesful American company under the guise of "fines".

omg

 

[diego.caraballo]

You got it wrong: they’re investigating why/how Apple applies different more lenient rules to themselves and their own tracking for advertising purposes that are designed to encourage consumers to opt in.

“The Bundeskartellamt has today sent Apple Inc., Cupertino, USA, and Apple GmbH, Munich, its preliminary legal assessment of Apple’s “App Tracking Transparency Framework” (ATTF).

Since the implementation of the ATTF in April 2021, providers offering apps in the iOS App Store have had to obtain additional consent from users before gaining access to certain data for advertising purposes.

However, the strict requirements under the ATTF only apply to third-party app providers, not to Apple itself. In the Bundeskartellamt’spreliminary view, this may be prohibited under the special abuse control provisions for large digital companies (Section 19a(2) of the German Competition Act (GWB)) and under the general abuse control provisions of Article 102 TFEU.”

They are questioning whether Apple should request user’s authorization to be tracked by third party advertisers since Apple itself “doesn’t” require that for itself.

First, Apple terms and conditions mentions the usage tracking. The only app that I’m aware of showing “ad’s” on iPhone is the App Store. And you can opt-out of personalized suggestions there.

Now regulators want to make things equal between the highly private and protected Apple ecosystem and a unknown advertiser out in the wild…

 

[IceCool]

Last time I checked, their NFC technology is not mine as a developer nor anyone else's. It's Apple's and they can choose who gets access to it.

There are so many problems with this...

 

[retroneo]

I do not get how this can help consumers more than this is done already. By Apple.

You are paying a commission to Apple every transaction with Apple Pay. Direct NFC avoids that, allowing competition.

Last time I checked, that NFC hardware is not mine

Some people feel that the NFC hardware they paid for might at least be a little bit theirs.

 

[AppliedMicro]

The only app that I’m aware of showing “ad’s” on iPhone is the App Store

I’m sure you are aware of the Music app too.
Heck, they’ve been showing “ads” in the Settings app and the Wallet app.

Now regulators want to make things equal between the highly private and protected Apple ecosystem and a unknown advertiser out in the wild…

I get your point, and, too, trust Apple somewhat more with regards to privacy than certain other companies.
That said, it’s meaningless and irrelevant from an antitrust point of view.

The EU has somewhat robust privacy regulations/laws in place (though they can, admittedly, also be a bit unwieldy). And that’s how it should be regulated. The two things shouldn’t be conflated.

Apple - just like any other company - should not get a free pass on monopolising markets/services just because of their privacy policies.

 

[AppliedMicro]

It's Apple's and they can choose who gets access to it.

…subject to antitrust regulation and action.

Monopolists or duopolists do not enjoy unchecked and unlimited right to market and prices their products and services as they please.

Besides, Apple certainly did not NFC technology, nor its use for payment instruments and transactions. They’re merely leveraging it in a platform of theirs (iOS) that has some monopoly power.

 

[I7guy]

Correction. They (seem to) know that they do differ from the EU conditions:

“The Secretariat is now conducting a preliminary investigation to determine whether the terms and conditions for granting access – which differ from those applicable in the EEA – comply with Swiss antitrust law”

https://www.esa.admin.ch/en/newnsb/egoLzxP2rT6G265nJvqnA

Without knowing what those conditions actually are, I suppose they follow Apple’s usual modus operandi of malicious compliance: Feigning compliance by intentionally setting a fee/commission structure that makes third-party usage economically non-viable.


By costing less.

Malicious compliance is the only way Apple has to protect their assets from these overreaching laws.

 

[diego.caraballo]

You are paying a commission to Apple every transaction with Apple Pay. Direct NFC avoids that, allowing competition.

The empty promise of paying less is getting old. Fornite developer sued Apple and Google with the same promise, and here we are now paying exactly the same. But Fornite is earning more.

So it’s never about customers getting benefits. It’s about corporations getting even more profits at expense of your privacy.

 

[turbineseaplane]

The only app that I’m aware of showing “ad’s” on iPhone is the App Store.

Also Wallet … which every week or two decides to show me an Apple Card AD again.

Pisses me off every damn time.
Totally inappropriate

 

[I7guy]

…subject to antitrust regulation and action.

Monopolists or duopolists do not enjoy unchecked and unlimited right to market and prices their products and services as they please.

Besides, Apple certainly did not NFC technology, nor its use for payment instruments and transactions. They’re merely leveraging it in a platform of theirs (iOS) that has some monopoly power.

Apple isnt a monopolist with hundreds of competitors. Each competitor with their own form of an operating system.

Just to be clear unchecked anything does not exist on the face of this earth, but Apple has a right to build a vertical ecosystem.

 

[I7guy]

I’m sure you are aware of the Music app too.
Heck, they’ve been showing “ads” in the Settings app and the Wallet app.

Maybe you’re in a pilot. Ads in the settings app?

 

[turbineseaplane]

Malicious compliance is the only way Apple has to protect their assets from these overreaching laws.

It’s nice to see folks admitting they are actually doing malicious compliance.

Many who defend Apple claim they are not.

 

[Nekronos]

Also Wallet … which every week or two decides to show me an Apple Card AD again.

Pisses me off every damn time.
Totally inappropriate

didn't they add the ability to turn off promotions in wallet?

 

[AppliedMicro]

Apple isnt a monopolist with hundreds of competitors

There are no “hundreds of competitors” in the Swiss NFC consumer payment devices for payment providers to tap into.

There’s Google Pay and Apple pay that dominate the market.

 

[surferfb]

It’s nice to see folks admitting they are actually doing malicious compliance.

Many who defend Apple claim they are not.

FWIW, I don't think they're complying maliciously, I do think they're trying to comply to the absolutely least extent possible. But those aren't the same thing.

Actual malicious compliance would be something like "ok, apps can be installed from anywhere, we're not going to do security checks or notarization checks, and when users reach out to complain about getting viruses we'll provide them the contact information of their EU representatives and point out this doesn't happen anywhere else in the world."

 

[I7guy]

It’s nice to see folks admitting they are actually doing malicious compliance.

Many who defend Apple claim they are not.

So the op and I are in the same page I’m using the same terminology as the op. I don’t personally view this is as “malicious compliance”. But yeah, thanks for having this clarified.