Competitors of Apple will soon be able to use the technology in iPhones for contactless payments. The European Commission has made legally binding agreements with the tech company to facilitate this change.
Previously, Apple Pay was the only ‘mobile wallet’ allowed to use the NFC chip in iPhones. This NFC technology enables contactless payments in stores via smartphones. Apple had not granted access to this NFC chip to other developers.
According to the European Commission, Apple abused its dominant position by restricting access. This will now change, according to European Commissioner for Competition Margrethe Vestager. Within two weeks, Apple must ensure that other payment services can also utilize the NFC chip in iPhones.
“From now on, competitors can effectively compete with Apple Pay for mobile payments using the iPhone in stores,” Vestager said. “Consumers will have a broader selection of safe and innovative mobile wallets.”
These agreements will be in place for ten years. If Apple does not comply with the rules, the European Commission can impose a fine of up to 10 percent of Apple’s total annual revenue.