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. US antitrust chiefs pledge to crackdown on Big Tech gatekeeping “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. The Apple Pay investigation was one of two cases that the European Commission opened in June 2020, part of efforts by Vestager to rein in powerful tech companies. It follows the EU’s decision in 2016 to hit Apple with a record €13 billion (US$13.7 billion) tax bill, which is subject to a pending court case following the company’s successful appeal at a lower EU court. US antitrust probe of Google Maps picks up speed Apple defends its approach by noting the popularity of rival services on the iPhone. That includes PayPal, which is widespread in Europe, and some other options that are more popular than Apple Pay in certain European countries: MobilePay (Denmark), Swish (Sweden) and Payconiq (Belgium). The company also said it gives all banks equal access to the payment system, with 2,500 banks in Europe connected, as well as smaller fintech companies and upstart financial services. “We designed Apple Pay to provide an easy and secure way for users to digitally present their existing payment cards and for banks and other financial institutions to offer contactless payments for their customers,” Apple said in a statement, saying it will “continue to engage with the commission to ensure European consumers have access to the payment option of their choice in a safe and secure environment”. Video gaming industry gains extra life with end of licensing freeze but risks remain Separately, the Dutch consumer protection regulator is preparing to issue Apple with fresh fines after the watchdog found that the changes the technology giant made to how dating apps can bill customers were “insufficient”. “Apple still uses unfair conditions for dating-app providers in the Netherlands,” the Authority for Consumers & Markets (ACM) said in a statement. Its own investigation, plus market consultation and expert analysis have demonstrated that, the regulator said. The ACM has already penalised Apple €50 million for rule breaking. The company had filed a proposal to fully comply with an order to offer payments outside the app store to dating app providers after the fine. That proposal offers improvements “but these still fall short of meeting European and Dutch rules,” the regulator said, adding that it continues to hold discussions with Apple about the issues.