Apple will let rival companies employ its wallet technology on its iPhones for free for a decade, European Union regulators said Thursday, the latest change prompted by local regulations.
Apple’s mobile wallet lets iPhone users pay for products in stores and online using its own branded Apple Pay. Until now, Apple has not made its near-field communication (NFC) technology, which allows phones to communicate with payment terminals, available to competing developers, leading to the EU warn in 2022 that limiting access to this technology constitutes an abuse of market power.
Apple’s concession ends a two-year dispute between the Huge Tech giant and the European Commission over the company’s payments technology. The change, first proposed by Apple in Decembermeans the smartphone maker will avoid billions in fines and a formal declaration from Brussels that it has broken EU rules.
“[Apple’s commitment] opens up competition in this key sector by preventing Apple from excluding other mobile wallets from the iPhone ecosystem,” Margrethe Vestager, EU competition commissioner, said in a statement.
“Now, competitors will be able to compete effectively with Apple Pay for mobile payments with iPhone in stores. This will give consumers a wider choice of secure and innovative mobile wallets.” The changes will be in effect for at least 10 years and will only apply to users residing in the European Union, as well as Iceland, Liechtenstein and Norway.
Apple spokesman Julien Trosdorf told WIRED that Apple’s decision to expand access to NFC means that developers in Europe will be able to implement the technology in iOS apps for use cases such as car keys, corporate IDs, hotel keys, and event tickets.
“Apple Pay and Apple Wallet will continue to be available to users and developers in the European Economic Area,” he added.
For years, Apple has maintained tight control over the technology available to millions of people who use its devices. But intense EU scrutiny and new regulations have caused the smartphone maker to make some significant changes to the way it operates.
In response to EU complaints, the company will now have to allow alternative app stores for iPhones and iPads, creating competition for the first time to Apple’s App Store. The company will also have to offer “selection screens“when users purchase a new Apple device, giving them the option to install Apple’s own branded apps or alternative third-party apps. The company is also attractive a nearly $2 billion fine that focuses on rules and restrictions imposed on third-party developers creating iOS apps.