According to Financial Times (FT), the EU plans to accuse Apple of blocking financial groups from the Apple pay system.
The EU will bring an antitrust charge against the tech giant (Apple) over how it functions the “Apple Pay” digital wallet, reports FT. The report further claims charges will be filed next week. But there’s a chance it will be shifted to a later date.
What’s Apple Pay?
Apple Pay is a mobile payment and digital wallet service available on various Apple devices. Customers can connect payment cards to “Apple Pay” and utilize services to make a purchase. All they need to do is hold their iPhone close to the card reader.
Apple Pay and the curious case of antitrust charges
The European Union’s executive branch, “European Commission,” launched the antitrust probe against Apple Pay in 2020. Officials stated the investigation would inspect the “alleged access blocking” that might have limited the rival’s ability to approach the service.
One of the main focuses of the investigation revolved around NFC chips involved in iPhones. The tech giant utilizes these chips to allow customers to make noncontact payments in Apple stores by keeping devices closer to card readers.
Some NFC features can be used only by Apple, whereas third-party applications have access only to a certain feature set.
As per the FT, antitrust charges against Apple Inc. will be related to NFC tech powering Apple Pay’s payment features. Authorities will blame Apple for wrongfully blocking PayPal Holdings and various lading banks, etc., from using Apple Pay.
If antitrust charges against Apple Inc. are upheld, legal experts believe the company could experience fines of more than 9% of the total yearly revenue. Apple has generated more than $370 B in revenue in 2021, which is more than 2020’s $294 B.