BRUSSELS, Belgium—European regulators have accused Apple of abusing its dominant position to restrict the ability of competitors to access the digital wallet technology behind Apple Pay, a move that potentially opens it up to significant fines.
In a “statement of objections,” which represents a preliminary conclusion to an investigation, the European Commission said Apple tried to restrict the “tap and go” technology that plays a major role in its success in mobile wallets, a growing segment of the economy, according to the Washington Post.
“The global mobile payment market, which was valued near $1.8 billion in 2021, is expected to swell past $6 billion in the next five years, according to estimates by Research and Markets,” the Post reported. “The explosive growth reflects the rise of online shopping, boosted by technological advancements, in a field that includes PayPal, Mastercard, Google Wallet and other providers. Apple Pay claimed more than 500 million users in 2020, but some consumer research has suggested active usage rates are low.”
Margrethe Vestager, the European antitrust chief, suggested that Apple may have restricted third parties from accessing the key technology needed to develop mobile wallet alternatives for its devices.
“Apple may have restricted competition, to the benefit of its own solution Apple Pay,” she was quoted as saying. “If confirmed, such a conduct would be illegal under our competition rules.”
‘Small Fraction’
In response, Apple said its mobile payment platform facilitates “a very small fraction of transactions in Europe” and is “only one of many options available to European consumers for making payments” in a statement emailed to the Post.
Apple said it has “ensured equal access” to the technology in question while “setting industry-leading standards for privacy and security.” Apple added that many other mobile payment options have “found success on iOS,” from PayPal to European alternatives such as MobilePay, Payconiq and Swish.
“We will continue to engage with the Commission to ensure European consumers have access to the payment option of their choice in a safe and secure environment,” Apple said in the statement.
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