Apple settles EU case by opening its iPhone payment system to rivals

Core Viewpoint - The European Union has accepted Apple's commitment to open its "tap to pay" iPhone payment system to competitors, resolving an antitrust case and avoiding significant fines [1][2]. Group 1: Regulatory Actions - The European Commission has made Apple's commitments legally binding, addressing concerns over its dominant position in mobile payments [1][2]. - Apple was accused of limiting access to its mobile payment technology, which led to the investigation initiated in 2022 [1][3]. Group 2: Changes in Payment System - Apple will allow third-party mobile wallet and payment service providers access to the contactless payment function in its iOS operating system [1][2]. - Users will be able to set a default wallet of their choice, and mobile wallet developers can utilize iPhone verification functions like Face ID [3]. Group 3: Financial Implications - Analysts suggest that companies will have financial incentives to use their own wallets instead of Apple Pay, potentially leading to cost savings for consumers [3][5]. - Apple charges banks 0.15% for each credit card transaction processed through Apple Pay, which could be reduced if alternative wallets are adopted [3]. Group 4: Implementation Timeline - Apple must implement these changes across the EU's 27 countries, as well as Iceland, Norway, and Liechtenstein, by July 25 [4]. - The changes will be monitored for a decade to ensure compliance with EU competition laws [5]. Group 5: Benefits to Banks and Consumers - Supporting alternatives to Apple Pay could significantly reduce fees for issuing banks, which may lead to benefits for consumers such as cashback or loyalty rewards [5]. - Companies using their own apps for payments would gain full visibility of customer transactions, allowing for enhanced brand loyalty and personalized services [6].