Apple fines billions for chip limit on iPhones

Apple fines billions for chip limit on iPhones

The European Commission today filed a complaint with Apple about how NFC chips in its products are being restricted by third parties. For payments, the chip can only be used for the own Apple Pay payment service. For this reason, Apple excludes banks and other payment services such as PayPal. Banks that support Apple Pay are also required to pay a small percentage to the iPhone manufacturer per payment.

According to the European Commission, Apple’s behavior “leads to less innovation and less choice for consumers for mobile wallets on the iPhone”. European Commissioner Margrethe Vestager believes that consumers “should be able to benefit from a competitive and innovative payment environment”. “We’ve tentatively determined that Apple may have restricted competition in favor of its own Apple Pay.”

The European Commission is now going to conduct new investigations. If Apple is found to be infringing competition rules, the fine can be up to 10% of annual sales. This could represent about EUR 35 billion.

ACM also complains about Apple

The European investigation into Apple Pay has been ongoing since 2020. This is not the only lawsuit that Brussels has filed against Apple. The European Commission is also investigating whether the company’s app store is illegally restricting competition in e-books and music services.

Last year, the Dutch regulator ACM also complained about Apple Pay and argued for European interference. Germany is also working on new rules that will force Apple to open up its NFC chip to others.

Source: RTL