An investigation has been opened against Apple for violating European competition law due to the abuse of its dominant position in digital payments. The company has been accused of restricting access to contactless technology for competitors.
The European Commission is concerned that Apple is preventing competition in access to so-called ‘tap and go’ chips and near-field communication (NFC) in favor of its own Apple Pay system.
Margrethe Vestager, Executive Vice President of the European Commission for Europe Fit for the Digital Age, responsible for competition, stated that Brussels assumed that Apple limited access to key technology necessary for the development of competitive forms of digital wallets on their devices.
She also added that the Commission ‘previously learned that Apple may have restricted competition in favor of its own Apple Pay application.’ If confirmed, ‘such actions would be illegal under our competition rules,’ Vestager said.
If the allegations are confirmed, the company could face a financial penalty of up to ten percent of its global revenue.
A Series of Allegations
The allegations from the European Union are the latest in a series of monopoly accusations that have led to an investigation against this tech giant in Brussels.
Apple is also under scrutiny for the way it is believed to hinder competitors in the App Store by taking 30 percent from certain subscriptions while denying some the ability to show users other upgrade options. This case was opened two years after complaints were made to the Commission by the music streaming application Spotify.
