Apple strikes ‘tap and go’ agreement with European Union

Apple (NASDAQ:AAPL) has agreed a deal with the European Union to resolve a row over Apple Pay and the use of near-field communication (NFC) on iPhones.

It sees Apple concede to allow third-party developers to use the iPhone’s NFC capabilities for third-party payment wallets.

The agreement means Apple will avoid a massive antitrust fine that, according to media commentators, could have run up 10% of its global turnover (which could’ve meant some $40 billion).

Meanwhile, according to the European Commission, the new arrangements prevent Apple from excluding rival mobile wallets from the iPhone ecosystem.

It claimed it would enhance competition and provide consumers with more choices in mobile wallets.

Today’s agreement follows prolonged engagement between Apple and the EC, triggered by an EU probe in 2020.

“It is safe and convenient to pay with your phone,” said EC executive vice-president for competition policy Margrethe Vestager, who added: “Apple has committed to allow rivals to access the 'tap and go’ technology of iPhones.

“From now on, competitors will be able to effectively compete with Apple Pay for mobile payments with the iPhone in shops. So consumers will have a wider range of safe and innovative mobile wallets to choose from.”

In New York, Apple stock was down $3.85 or 1.65%, changing hands at $229.13.pep