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May 3, 2022

Anna Murray 

Apple was accused by the European Union (EU) on May 2 of exploiting its market dominance in Apple Pay to prohibit other companies from competing in contactless payment technologies. According to the European Commission, the executive arm of the EU's 27-nation bloc, Apple has denied PayPal and other companies’ access to iPhone technology, known as near-field communication technology (NFC), which allows customers to make purchases with a single tap.

Since 2020, the Commission has been investigating at several Apple's business practices in Europe, including whether the company is breaking European antitrust laws when it comes to music streaming and the app store. Abuse of a dominant position is prohibited by Article 102 of the Treaty on the Functioning of the European Union (TFEU). The Antitrust Regulation (Council Regulation No 1/2003), which can also be applied by national competition authorities, defines how these provisions are to be implemented.

In a Statement of Objections, the Commission found that Apple may have restricted competition in favor of its own Apple Pay solution. The Commission has informed Apple of its preliminary finding that it misused its dominant position in the market for iOS mobile wallets. The Commission is concerned about Apple's failure to give mobile wallet app developers access to the essential hardware and software on its devices in order to promote Apple Pay. If proven, such action would be illegal and in violation of EU antitrust rules.