Apple hit with EU antitrust complaint over iPhone payments

Apple was hit by a formal antitrust complaint from the European Union over how it handles iPhone payment services, an area where regulators say the tech giant favours its own technology over rival platforms.

The European Commission sent a so-called statement of objections alleging that Apple abuses its control over mobile wallets by limiting how third-party firms can provide services on the iPhone. The move escalates an investigation that began nearly two years ago. If confirmed, Apple could face hefty fines under EU antitrust rules.

The issue centres on Apple Pay, which customers can use via the iPhone’s near field communication chip. That allows them to tap to pay, something that is not available for rival services, such as PayPal. Apple is planning to open up the technology so vendors can use it to accept payments, but customers still will not be able to use the tap feature to make payments with rival services – a more pressing need for most phone owners.

The situation would seem to create an unequal playing field, EU regulators said.

“We have indications that Apple restricted third-party access to key technology necessary to develop rival mobile wallet solutions on Apple’s devices,” EU antitrust chief Margrethe Vestager said in a statement on Monday. The EU’s charge sheet makes a preliminary finding that the company “may have restricted competition, to the benefit of its own solution”.

The decision to ramp up its investigation comes weeks after the EU approved sweeping new rules to rein in how US tech firms operate in the region. The measures, designed to work alongside traditional antitrust powers, aim to prevent companies from abusing their power as gatekeepers to digital technology.