Apple Pay faces EC probe over 'possible anticompetitive' practices

guest · Oct 17, 2019

Apple Pay faces EC probe over 'possible anticompetitive' practices
October 17, 2019
https://www.theinquirer.net/inquirer/news/3082732/apple-pay-eu-probe

The European Commission (EC) once again has Apple in its sights and is this time probing whether the Apple Pay is squeezing third-party firms out of the mobile payments market.
The watchdog's biggest concern relates to Apple's proprietary Near-Field Communication (NFC) chip, according to a report in MLex, which Apple Pay relies on to enable users to pay at stores by just holding their phones near a card reader.

However, Margrethe Vestager, Commissioner in charge of competition policy, said last year that she was aware of reports that Apple was limiting the use of the NFC chip to only cards included in Apple Wallet, noting that no such restrictions on NFC permissions for cards or banking apps exist on Android.
In an attempt to gather more information prior to the launch of a formal investigation, EU antitrust investigators have reportedly begun asking developers and payment companies for feedback on Apple Pay.

Apple, which last year settled an NFC-related spat with Swiss payment company TWINT, has long argued that limiting access to the NFC chip provides tighter security, and claims this one of the reasons consumers choose Apple Pay in the first place.
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MLex: Apple Pay draws EU antitrust scrutiny

ABaird3 · Oct 17, 2019

"You can trust us, so when we tie you into our product and stop you using a competitor, it's because we're thinking of you, we care about you, dear user."

Rasheed187 · Oct 19, 2019

I think services like Apple Pay are the dumbest thing ever. I will stick to my creditcard, it does the job.

roger_m · Oct 19, 2019

Rasheed187 said: ↑

I think services like Apple Pay are the dumbest thing ever. I will stick to my creditcard, it does the job.
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I wouldn't go as far as describing them as dumb. But I wouldn't ever used Apple or Google Pay. I'll stick with cards and cash.

Rasheed187 · Oct 20, 2019

roger_m said: ↑

I wouldn't go as far as describing them as dumb. But I wouldn't ever used Apple or Google Pay. I'll stick with cards and cash.
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What I meant is that creditcards are already a great solution, why would I want to use an expensive device when I want to pay stuff, that is the dumb part.

XIII · Oct 20, 2019

Rasheed187 said: ↑

Why would I want to use an expensive device when I want to pay stuff
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Privacy & Security: https://support.apple.com/en-us/HT203027

This part is really neat:

After you authenticate your transaction, the Secure Element provides your Device Account Number and a transaction-specific dynamic security code to the store’s point of sale terminal along with additional information needed to complete the transaction. Again, neither Apple nor your device sends your actual payment card number.

And actually convenience too (paying with your Apple Watch instead of getting a debit card with NFC out of one of your pockets).

guest · Nov 8, 2019

EU antitrust chief hints at formal Apple Pay antitrust probe
Vestager has heard 'many, many concerns' about service
November 8, 2019
https://www.theinquirer.net/inquirer/news/3083568/eu-vestager-apple-pay-investigation-comments

EU Competition Commissioner Margrethe Vestager has heard "many, many concerns" over Apple Pay since she started probing the service earlier this year.

Naturally, the growing platform has drawn regulatory attention, and EU antitrust investigators in August sent a questionnaire to banks and developers of rival payment systems about Apple Pay.
Reuters reports that as part of the probe, the EU regulator is also asking online retailers if they are contractually obligated to use Apple's payment system over rival services.
Speaking at nerdfest Web Summit this week, Vestager revealed that since the questionnaire was sent out, she has high number of complaints about the service.

"We've been asking quite a number of questions because we get many many concerns when it comes to Apple Pay for pure competition reasons," said Vestager, without specifying who had expressed concern.
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Reuters: EU's Vestager says Apple Pay has prompted many concerns

guest · Sep 21, 2020

EU could force Apple to open up iPhone NFC functionality
September 20, 2020
https://www.finextra.com/newsarticle/36593/eu-could-force-apple-to-open-up-iphone-nfc-functionality

Apple Pay is the only mobile payment service that may access the NFC 'tap and go' technology embedded on iOS mobile devices for payments in stores, a process that has been damned by banks in a number of jurisdictions for preventing competition from their own proprietary apps.

In June, the EC opened an antitrust investigation into the issue. Now, according to documents seen by Bloomberg, the Commission will also look into new laws.
Apple has previously won a long-running battle with Australia's banks over access to its NFC functionality, arguing that giving third parties access would pose a security risk.
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Bloomberg: Apple Would Have to Share Payment Tech Under Rules Mulled by EU

NFC technology handles wireless signals that allow users to pay via their devices at store terminals, rather than a credit or debit card. While the report did not mention Apple by name, at present iPhone and Apple Watch users can only make NFC payments using Apple Pay.
Banks and other competitors have complained they want the same functionality for their own iPhone apps and that Apple won’t give them access to the chip.

The report is set to be unveiled next week by the European Commission as part of a package of policy proposals.
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guest · Dec 5, 2020

Apple Pay Targeted in Dutch Antitrust Probe Into Payment Apps
December 4, 2020
https://www.bloomberg.com/news/arti...ed-in-dutch-antitrust-probe-into-payment-apps

Apple Inc. phones face scrutiny from Dutch antitrust regulators who are probing whether users get a free choice of financial apps with contactless payments.

The Netherlands Authority for Consumers and Markets said on Friday it started an investigation into payment apps’ access to near-field communication, which allows people to wave their phones at payment terminals to make purchases.
While the regulator didn’t name Apple, it cited concerns that “the software on some smartphones only allows the software developer’s own payment app to connect to NFC communication.”
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At present, iPhone and Apple Watch users can only make NFC payments using Apple Pay.
The Dutch authority “will investigate whether limiting the payment apps’ access to NFC communication reduces the users’ freedom of choice,” it said. If it “does establish a violation, it may result in a penalty, such as a fine.”
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