Apple Allows Samsung and Google Pay in Europe... Opens Up Under Fine Pressure

Starting from the 25th of this month, maintained for 10 years across the entire European Economic Area

Apple has decided to allow payment methods other than Apple Pay across virtually all of Europe as early as the end of this month. This move is aimed at avoiding the European Union (EU)'s 'fine bomb' targeting Apple.

Margrethe Vestager, EU Executive Vice President for Competition, held a press conference in Brussels on the 11th (local time) and announced, "Apple has committed to allowing competitors access to the iPhone's 'tap-and-go' technology." She specifically stated, "This access to the technology will be provided to (competitors) free of charge," adding, "With this (Apple's) commitment, we will close the investigation regarding Apple Pay (for antitrust violations)."

This measure is to be implemented from the 25th and will be maintained for 10 years across the European Economic Area (EEA), including the 27 EU member countries. The Commission stated that failure to comply with the commitment could result in fines of up to 10% of annual global turnover and enforcement penalties of 5% of daily turnover.

Tap-and-go is a near-field communication (NFC) payment method where payment is made by holding a mobile phone close to a terminal. Apple currently only allows Apple Pay on its devices such as the iPhone.

The Commission launched an antitrust investigation in 2020, considering Apple Pay's market dominance could harm fair competition, and in May 2022, a preliminary investigation concluded that Apple Pay's operation was likely illegal under antitrust laws. If the in-depth investigation also concludes a violation, significant fines are expected. Consequently, Apple submitted a corrective plan in January this year to allow competitors to use NFC on iPhones and iPads free of charge.

At a background briefing on the same day, an EU official responded to the question, "Can Samsung's mobile wallet also be applied immediately in principle?" by saying, "From today (the 11th), those hoping to develop NFC-based mobile wallets on the iOS operating system will receive the necessary documents for solution development within 14 days," adding, "Samsung's mobile wallet development is not excluded." Another EU official said, "Especially in Samsung's case, since they already operate (mobile wallets) on Android, there will be synergy," and "Apple's corrective plan proposes using the same technology they use on Android."

However, outside of NFC allowance, the EU and Apple are still engaged in legal battles. Earlier this year, the EU Commission fined Apple 1.84 billion euros (approximately 2.7 trillion KRW) for abusing its market dominance in the music streaming app market by blocking consumers from accessing cheaper subscription services, and Apple has filed a lawsuit with the EU General Court in response.

Prior to this, the Commission ruled that Apple must pay 'back taxes' after receiving tax benefits amounting to 13 billion euros (approximately 18.2 trillion KRW) from Ireland, an EU member state, in 2016. Apple and Ireland filed lawsuits over this decision, winning at the first instance, but the EU appealed and the case is currently in the appellate court.

This content was produced with the assistance of AI translation services.