After EU antitrust officials charged Apple with preventing rivals’ access to its mobile wallet technology, the iPhone maker might face a huge punishment and be forced to open its mobile payment system to competitors.
This is Apple’s second EU charge, following a complaint from Spotify last year, when EU regulators accused the company of distorting competition in the music streaming market.
The European Commission announced on Monday that it had given Apple a charge sheet, also known as a statement of objections, explaining how the corporation had abused its dominant position in markets for iOS mobile wallets.
Apple’s anti-competitive activities, according to the Commission, began in 2015, when Apple Pay was introduced.
In a statement, EU antitrust chief Margrethe Vestager stated, “We have indications that Apple limited third-party access to essential technology necessary to develop competitor mobile wallet solutions on Apple’s devices.”
“We preliminarily found in our statement of objections that Apple may have hindered competition to the benefit of its own solution, Apple Pay,” she said.
So far, our study has turned up no information that points to such a larger security risk. “On the contrary, material in our file shows that Apple’s actions are not justified by security concerns,” she said at a press conference.
Before the Commission issues a ruling, Apple can request a closed-door hearing to defend its case and also submit a written rebuttal, which might take a year or more.
The Digital Markets Act, which would require Apple to open up its closed eco-system or face fines of up to 10% of its global turnover, is due to be implemented by the EU next year.