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In a Preliminary Judgement, the EU Declares Apple Pay to be Anticompetitive

Third-Party Developers of Mobile Wallets have Access to NFC Input, According to the Decision.

The European Union has charged Apple with antitrust violations for excluding competitors from its Apple Pay mobile payment system. The EU issued a formal “Statement of Objections” to Apple, stating that it believes Apple has misused its dominant position in iOS mobile wallets.

The judgement states, “The Commission takes issue with Apple’s decision to ban mobile wallet app developers from accessing the requisite hardware and software (‘NFC input’) on its devices for the advantage of its own solution, Apple Pay.” “Today’s Statement of Objections is limited to third-party developers of mobile wallets for in-store payments having access to NFC input.”

Apple’s discriminatory stance, according to the EU, “leads to less innovation and less choice for consumers for mobile wallets on iPhones.”

This is simply the first formal round of Apple’s antitrust case, and the business will have the opportunity to reply to the Commission’s complaints. The sending of a Statement of Objections “does not prejudge the outcome of an investigation,” according to the EU.

This is simply the first formal round of Apple’s antitrust case, and the business will have the opportunity to reply to the Commission’s complaints. The sending of a Statement of Objections “does not prejudge the outcome of an investigation,” according to the EU.

The decision comes after claims that the firm unfairly penalizes competitor music streaming services last year. The EU has the power to sanction Apple up to ten percent of its global revenue ($36 billion) and compel the corporation to change its business practices. However, any fines upheld against Apple’s probable appeal of the allegations will be far lesser in practice.

The Commission’s preliminary opinion against Apple demonstrates that the EU is leading the way in efforts to limit Big Tech’s dominance. The bloc has approved two key legislative acts in recent weeks aimed at mitigating the harmful consequences of digital behemoths. The Digital Services Act (DSA), which requires enterprises to tighten their controls over harmful information on their platforms, and the Digital Markets Act (DMA), which aims to level the playing field by allowing smaller businesses to compete with larger corporations.

Apple has opposed to a number of EU requirements, particularly those that weaken Apple’s control over the App Store (from which Apple collects significant revenue).

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