Nandu News Reporter Li Ling On May 2, the European Commission issued a statement on its official website to formally launch an antitrust investigation into Apple's Apple Pay (Apple Pay). Apple has been accused of abusing its dominance in the iOS mobile payment space, restricting competitors from using its NFC (Near Field Communication) chip capabilities.
Statement on the official website of the European Commission.
Margrethe Vestager, the Commission's executive vice-president and head of competition, said there were indications that Apple's denial of third-party access to key technologies for mobile payments on iOS devices could limit competition. If proven, this is contrary to EU regulations prohibiting the abuse of market dominance.
Vestag spoke.
The European Commission mentioned in the statement that after the investigation, it is initially believed that Apple has significant market power in the mobile smart device market and occupies a dominant position in the mobile payment market. Apple's refusal to open up key technologies for iOS mobile payments to third parties and allow only Access to Apple Pay is an exclusion that undermines market competition, inhibits innovation, and reduces consumer choice in the mobile payment space.
According to Nandu reporters, on June 16, 2020, the European Commission issued a statement saying that it was evaluating whether apple Apple Pay (Apple Pay) and App Store (app store) related measures violated EU competition rules. At the time, the European Commission said the two investigations would be carried out as a matter of priority, and if Apple did commit such acts, it would face fines of up to 10% of its annual global turnover.
According to the 2021 fiscal year annual report, Apple achieved annual operating income of $365.817 billion. If the 10% fine is estimated, the fine will be as high as US$36.58 billion, equivalent to about RMB241.74 billion.
This time, the European Commission once again revealed that the investigation of Apple Pay will focus on Apple's restriction of competitors' access to NFC chips. However, the investigation is still in its infancy, and Apple has the right to respond to it, such as requesting a hearing to defend it or submitting a written response. The Commission said it "will not prejudge the outcome of the investigation".
In the face of the EU's allegations, an Apple spokesperson said in a statement that Apple Pay's original intention was to provide users with a simple and secure way to pay, which is one of the many options for European consumers to use mobile payments. In addition to ensuring that users use NFC equally, Apple sets industry-leading standards in privacy and security.
Apple also said it will continue to engage with the European Commission on the issue to ensure that European users are able to use their chosen payment methods in a safe and secure environment.