Apple to face EU antitrust charges over blocking third-party apps from iPhone NFC payment...

midian182

Posts: 7,919   +82
Staff member
In brief: Apple has dealt with plenty of antitrust cases in its time, and now it's set to face another. Cupertino is to be charged this week with breaking EU law over the way it operates the Apple Pay mobile payments system. If found guilty, the company could be hit with fines equal to 10% of its global turnover.

The Financial Times writes that EU investigators led by competition commissioner Margrethe Vestager will accuse Apple of blocking third-party service providers, such as PayPal and leading banks, from accessing its mobile wallet system.

The case, which was opened in 2020, specifically relates to Apple's Near Field Communication (NFC) payment technology in iPhones. The company keeps seamless contactless payments exclusively for its Apple Pay service. This means the likes of PayPal, Venmo, and banks can't offer a similar NFC experience to iPhone users via their own apps. Apple says allowing them complete access would breach the security and privacy of its users.

Apple is no stranger to antitrust allegations from the EU. It was investigated over charging third parties a 30 percent fee for hosting their apps on the App Store while promoting its own competing services on the marketplace. The commission found Apple in violation of EU competition rules in April 2021.

Apple also faces further antitrust charges in the European Union related to an earlier probe into how music streaming works and is promoted within the Apple ecosystem. The investigation was launched after a complaint filed by Spotify in 2019.

The EU recently approved the Digital Markets Act, which forces platform holders like Apple to lets people download apps from third-party sources, or sideloading, a practice that CEO Tim Cook has long rallied against due to the risk it apparently poses to users, and definitely not because it would cut into the money Apple makes from the App Store.

Permalink to story.

 

Aceseven

Posts: 315   +398
The fact all these companies want access to my funds makes me extremely suspect of em. if apples system is safe and secure then what are these others trying to do really, whats actually in it for them? im quite confused here.
 

dangh

Posts: 585   +923
Oh yes, can't wait to be forced to use my bank's cr@ppy app instead of Apple Pay <3
... please, read this thing again. If you want you can use apple pay without issue and no one will force you otherwise, but people who'd rather use their own way of payment (for example Revolut to avoid currency conversion charge) should be able to do so.
You might find it weird, but having more options do not mean you will lose anything...
And yes, a controll on your own device is not such a weird idea.
 

dangh

Posts: 585   +923
The fact all these companies want access to my funds makes me extremely suspect of em. if apples system is safe and secure then what are these others trying to do really, whats actually in it for them? im quite confused here.
No companies wants access to your funds (at least not by using required by EU functionality...). The problem is, if you're using apple pay and your e.g. visa card, Apple pay will charge additional fee for any transactions, adding extra cost. And Apple is locking the NFC hardware from other applications to access. So right now there is no way for a user to use his own, potentially better, payment system. EU comission wants apple to allow user on what he wants to use when using his phone NFC during the payment. If you want to stick with apple pay then nothing changes for you, if you'd like to use other form of payments (like paypal, revolut, amex) directly, then you should configure your device to allow this.
 

MasterMace

Posts: 220   +173
The fact all these companies want access to my funds makes me extremely suspect of em. if apples system is safe and secure then what are these others trying to do really, whats actually in it for them? im quite confused here.

NFC is not 'your funds'. It's a communication tech, like WiFi and Bluetooth. Apple locked down iOS so that NFC only works with Apple Wallet, and not apps from PayPal or Venmo or Banks.


Although this does confirm the caricatures of Apple users
 

Aceseven

Posts: 315   +398
No companies wants access to your funds (at least not by using required by EU functionality...). The problem is, if you're using apple pay and your e.g. visa card, Apple pay will charge additional fee for any transactions, adding extra cost. And Apple is locking the NFC hardware from other applications to access. So right now there is no way for a user to use his own, potentially better, payment system. EU comission wants apple to allow user on what he wants to use when using his phone NFC during the payment. If you want to stick with apple pay then nothing changes for you, if you'd like to use other form of payments (like paypal, revolut, amex) directly, then you should configure your device to allow this.
thanks for clarifying it, I still just use my debit card like always, its simple and just works,

tried to use my phone once to pay and it popped up a bunch of questions and verifications while I was at the register, I panicked and just left the stuff and walked out, never used that feature again.
 

p51d007

Posts: 3,156   +2,656
The fact all these companies want access to my funds makes me extremely suspect of em. if apples system is safe and secure then what are these others trying to do really, whats actually in it for them? im quite confused here.


From what I understand, they "technically" don't have access to your funds. They create a go between, you send something via apple pay, g-pay, samsung pay etc, the app contacts your bank, requesting a pin code, and the amount and who it is to. The bank sends the code back to apple or whomever, who sends it to the POS to validate it. I think the vendor(s) are the ones that get taken to the bank, so to speak.
 

BadThad

Posts: 1,043   +1,202
No surprise from the EU bureaucrats! This is their second money grab from an American company announced this week. They are desperate to steal money from America year after year after year with their ridiculous laws and fines it's hardly worth doing business there.
 

kiwigraeme

Posts: 1,052   +779
This is pure corruption. The users won’t benefit from this at all. But I’d take a bet that these banks are lobbying the EU to do this.

You're drawing a long bow here - Nothing corrupt about it at all -yes some companies may be lobbying - Least Washington DC is bereft of Lobbyists and ex Govt workers getting cushy jobs - I admire The USA complete separation of government and big business .

The sky will not fall - there's nothing overly insecure about this - you can do all sorts of payments on PCs whether Linux , Macs, PC - and people manage to crawl out of bed .

Can you use Apple Pay to NFC someone on an Android phone ?

The sky will not fall - paypal is really not for this - other options - will increase where you can use NFC if Apple pay not available .

Myself my phone is just for 2 factor - changing access/limit on visa/debit card on the fly.

I lose my phone - I'm not ****** except logging into my bank online - even then have another bank which may or may not let me do the transaction - rarely they use the phone as backup
Even then I can phone say my Insurance company and pay over the phone .

I.e Apple pay may be you go to buying a coffee - but don't let it be your only way .
When I used travelled fulltime - I had cash in USD, GBP different denominations as in Africa may be counterfeits of a specific note , at least 2 cards - one kept separate - Plus 2 types of Traveller cheques ( not sure anyone really uses them anymore - was basically insured money ) - In dodgy countries I had an at hand wallet/belt to hand to thieves ( never had to) and a real one ( with the big stuff ) . Your phone is a juicy target in itself - doesn't matter they can not use it

When I see people travelling with one Visa card - I think just 1 ATM gulp away from a fun time
 

BuckarooBonzai

Posts: 103   +70
I can just see Dalton (Road House) holding the Iphone for Apple on a billboard which reads: "It's My Way or the Highway".
 
Last edited:

Kam7r

Posts: 30   +53
No surprise from the EU bureaucrats! This is their second money grab from an American company announced this week. They are desperate to steal money from America year after year after year with their ridiculous laws and fines it's hardly worth doing business there.

they want to do business in the EU ? they have to follow EU's rules or get the fck out, simple...
 

dangh

Posts: 585   +923
This is pure corruption. The users won’t benefit from this at all. But I’d take a bet that these banks are lobbying the EU to do this.
You probably don't use payments travelling through different countries. If you pay in different currency, you will pay bank spread as well. Using certain banks like Revolut or n26 removes spread payment. But with apple pay this most surely is not an option, so you actually can lose your money, by paying conversion fees. So yeah, users will benefit from this, and people who don't want to use it wont lose anything.
Operating System should be giving users free options to choose from. It is simple thing to do, but Apple lpbbying all the time to keep user base as decisive as sheeps.