Apple's offer to open up tap-and-go tech to be approved by EU next month, sources say | Reuters

The Nugget

Apple's concession to open its tap-and-go technology to competitors marks a pivotal shift, poised to foster greater competition in the mobile payments sector upon EU approval.

Key quotes

"Apple's offer to open its tap-and-go mobile payments system to rivals is set to be approved by EU antitrust regulators as soon as next month after it tweaked some of the terms."
"Apple's bid to settle the four-year investigation would help it dodge a finding of wrongdoing and stave off a potential hefty fine that could be as much as 10% of its global annual turnover."
"The European Commission two years ago accused Apple of thwarting competition for its Apple Pay mobile wallet by preventing rival mobile wallets app developers from accessing its tap-and-go technology."
"The NFC proposal would be for 10 years."
"The company was hit with a 1.84 billion-euro ($2 billion) fine, its first EU antitrust penalty, last month for thwarting competition from Spotify and other music streaming rivals via restrictions on its App Store."

Apple agreed to enable competitor access to its Near-Field Communication (NFC) technology, crucial for contactless payments, in iOS devices without requiring the use of Apple Pay.
Adjustments in Apple's offer came after feedback from rivals and customers, signifying Apple's willingness to modify its terms favorably.
The proposed changes facilitating access to NFC on Apple devices are designed to be in place for a duration of 10 years, aiming for a long-term impact on the market competition landscape.

By offering concessions, Apple aims to avoid EU antitrust penalties, which could amount to 10% of its global annual turnover, following a four-year investigation.
This strategy mirrors Apple's broader efforts to comply with regulatory standards while averting financial and reputational damage stemming from potential findings of wrongdoing.

Apple's move could dramatically alter the competitive dynamics of the mobile payments market, enabling a fairer playing field for rival payment apps and potentially benefiting consumers with more choices and better services.
The agreement includes clauses for adding functionalities like setting preferred payment apps as default, access to authentication features, and a dispute resolution mechanism, further indicating Apple's commitment to equitable competition.

🍏 Apple's Pivot: Opening NFC tech to rivals, changing the mobile payment game.
📆 Ten-Year Promise: A decade-long commitment to competition in tap-and-go payments.
🏦 Dodging Fines, Embracing Change: Apple's strategic move to avoid EU sanctions while fostering fair market play.
🔍 Future of Mobile Wallets: A potential surge in competition and innovation benefiting consumers worldwide.

This summary contains AI-generated information and may have important inaccuracies or omissions.