EU Regulators Accept Apple Commitments to Open NFC Access to Rivals

[MacRumors]

The European Union has accepted commitments from Apple to open its mobile payments system and give competitors access to the iPhone's NFC technology, bringing an end to a lengthy investigation by EU regulators into the technology.

According to the announcement, Apple has agreed to open up its payments system to other providers free of charge for a decade. Apple will let users set a third-party wallet app as their default, rather than its own Apple Wallet. It will also allow rivals full access to key iOS features, such as double click to launch wallet apps, along with Face ID, Touch ID, and passcodes for authentication. From the EU press release:

The commitments bring important changes to how Apple operates in Europe to the benefit of competitors and customers.

First, Apple commits to give access to NFC functionality to third-party mobile wallets. This access will be free of charge.

It will take place in what is called "Host Card Emulation mode". This is a software solution that allows rival wallets to make secure NFC payments. Apple Pay, on the other hand, relies on access to the hardware "secure element" in the iPhone. We accept Apple's commitment because it offers an equivalent solution in terms of security and user experience. And it is easier to implement both for Apple and wallet developers. Indeed, other wallets already use this solution in an Android environment.

Second, Apple committed to enable access to important functionalities available on iPhones. This includes Double-Click and Face ID. iPhone users will be able to double-click the side button of their iPhones to launch their preferred payment application. Competing wallets will also be able to use Face ID, Touch ID and passcode to verify users' identities.

Third, Apple will also enable users to make the wallet of their choice the standard option on their iPhones. This is also known as setting the default option.

These commitments are applicable to users registered in the European Economic Area, including when they travel abroad.

And Apple will not prevent developers from combining NFC payments with other use cases, for instance transit cards, access control, concert tickets, and digital identity credentials. Everything that you could have in a wallet.

Apple has until July 25 to implement the changes. The company risks a fine if it violates the agreement, which will remain binding for 10 years.

The European Commission charged Apple in 2022 with violating competition law, contending that Apple was preventing competitors from accessing its near-field communication (NFC) technology to favor Apple Pay. In response to the charges, Apple made a commitment to the European Commission in January to open access to the iPhone's NFC, allowing competitors to create their own contactless payment solutions outside of the confines of Apple Pay and Apple Wallet.

The settlement means Apple will avoid a potential fine by the EU that could have been as high as 10% of the company's global annual revenue. Given Apple's reported revenue of $383 billion in 2023, the fine could have amounted to approximately $40 billion.

Article Link: EU Regulators Accept Apple Commitments to Open NFC Access to Rivals

 

[steve09090]

As usual. Apple complying with the law and doing what it can to help those poor companies make more money and taxes for the EU.

 

[Donoban]

When will the US hit the EU with a range of tariffs.

 

[nt5672]

I think we need to see how much Apple charges for this access, how complicated or impossible it makes the application process, and how many unreasonable demands Apple makes on the 3rd parties.

There is no way Apple is going to take the high road here.

 

[Ctrlos]

I've been in favour of every EU ruling so far but this is one that I don't think anyone will want. If every bank starts forcing its users to use their own app for contactless payments just to save the 0.15% in Apple Pay fees then nobody will use them. It will become more convenient (and less secure) to just carry a physical wallet again. With any luck it will be EU-only.

However opening up NFC in general is long overdue. Being able to switch Focus modes by tapping an NFC sticker or spoofing amiibo tags will be more welcome.

 

[attohs]

There is no way Apple is going to take the high road here.

Who is taking the high road? Apple, the European Government, or the European Banks?

 

[3304614]

When will the US hit the EU with a range of tariffs.

The US already did. There was a lot of hullabaloo a few years ago as the US and EU handed down tariffs on various things. Much of those tariffs have since been suspended (on both sides).

 

[Appleman3546]

I have a feeling that the same thing will happen to the core technology fee on third party AppStore’s…a settlement like this one

 

[bobbie424242]

Cannot wait for people here to be mad and angry that other apps can use NFC !

 

[dannys1]

However opening up NFC in general is long overdue. Being able to switch Focus modes by tapping an NFC sticker or spoofing amiibo tags will be more welcome.

You've been able to do that for YEARS. NFC is available in shortcuts to do anything with. About 8 years ago I used to use an NFC sticker next to my bed to run the night time automation.

 

[dannys1]

I think we need to see how much Apple charges for this access

In the article it says it must be free for 10 years.

 

[Daku93]

This will be fun. I have creditcards from 3 different banks myself plus another one from my employer.
If all of them start using different apps and I can only set one as the default for double clicking the side button, this will get very annoying. Right now its double clicking while iPhone is locked and the quickly swiping to the right card.

 

[JustSomebody12]

As usual. Apple complying with the law and doing what it can to help those poor companies make more money and taxes for the EU.

I've been in favour of every EU ruling so far but this is one that I don't think anyone will want. If every bank starts forcing its users to use their own app for contactless payments just to save the 0.15% in Apple Pay fees then nobody will use them. It will become more convenient (and less secure) to just carry a physical wallet again. With any luck it will be EU-only.

However opening up NFC in general is long overdue. Being able to switch Focus modes by tapping an NFC sticker or spoofing amiibo tags will be more welcome.

I get that some EU requirements of late can't seem a bit off, but I see nothing wrong here.

iPhones (and android phones) are almost ubiquitous, and it's de facto a duopoly.

Also, if a bank implements an inefficient or laggy wallet, customers will be able to switch bank

 

[ifxf]

Meanwhile in the US cash is making a comeback because merchants don’t want to pay the high fees.

 

[Reason077]

If every bank starts forcing its users to use their own app for contactless payments just to save the 0.15% in Apple Pay fees then nobody will use them.

Surely in this scenario the NFC cards would be integrated into the wallet app just like Apple Pay cards? That’s what the wallet app is for, after all.

But I don’t think any bank would ever drop Apple Pay unless the alternative was just as good. If my bank started making it difficult to use contactless payments, I’d just switch to another bank.

Payments aside, it would be nice to have loyalty cards integrated into wallet as NFC cards rather than the current process of scanning QR codes etc, which can be cumbersome.

Finally, remember that card interchange fees are far lower in the EU than in the US. I don’t know what Apple’s share is in the EU, but I’m sure it’s less than 0.15% considering that total interchange fees are capped at 0.2/0.3% for debit/credit cards.

 

[vtrautia]

I think its fair gatekeepers do not have ability block competion by not allowing using their payment tecnology. Thank you EU for open access to all rivals roo.

 

[CapitalIdea]

I've been in favour of every EU ruling so far but this is one that I don't think anyone will want. If every bank starts forcing its users to use their own app for contactless payments just to save the 0.15% in Apple Pay fees then nobody will use them. It will become more convenient (and less secure) to just carry a physical wallet again. With any luck it will be EU-only.

However opening up NFC in general is long overdue. Being able to switch Focus modes by tapping an NFC sticker or spoofing amiibo tags will be more welcome.

Spoofing amiibo tags? You mean to defraud Nintendo?

 

[Digital Dude]

When will the US hit the EU with a range of tariffs.

As soon as the last guy returns to office. 🙄

 

[joecomo]

and again our EU overlords saved the day ...

 

[M66Call]

I'm from Europe and I don't think it will make any difference for me to set a third party wallet app as my default. I'm still sticking with Apple Wallet

 

[Michael Scrip]

Apple will let users set a third-party wallet app as their default, rather than its own Apple Wallet.

Right now I can have credit/debit cards, store loyalty cards, airline tickets, movie tickets, etc, in the Apple Wallet app. It's pretty great!

But what would I gain with a 3rd-party wallet app? Will it be a better experience?

And is anyone asking for this?

🤔

 

[flottenheimer]

Bravo, EU. 👏👏👏

 

[Whats-a-computer?]

The german bank "Volksbanken Raiffeisenbanken" (over 30million customers) already announced that they will use this. Im looking forward to test how well it works.
It will be hard to convince me, since i love ApplePay.

 

[User 6502]

And yet again the EU shows shows who’s boss. ❤️🇪🇺

 

[Dr McKay]

Spoofing amiibo tags? You mean to defraud Nintendo?