Apple Pay: Europe accuses the firm of abuse of dominant position

Apple Pay is based on an anti-competitive operation, says the European Commission in charge of digital. According to a survey from Europe, Apple is abusing its dominant position in the smartphone market to impose its mobile payment method to the detriment of competition and banks.

According to information obtained by Reuters, Europe to tackle Apple Pay. Quoting “People familiar with the issue”, the media affirms that the European Commission considers that the iPhone mobile payment system presents risks of abuse of a dominant position.

After an investigation initiated last June, Margrethe Vestager, vice-president of the European Commission in charge of digital, believes that how Apple Pay works is anti-competitive. This is because it is not possible to use a mobile payment application other than Apple Pay on an iPhone or an Apple Watch. De facto, Apple imposes its own solution to the detriment of its rivals.

Apple faces hefty fine over Apple Pay

Citing potential risks to user safety, Apple firmly refuses to open the NFC chip of its smartphones to other payment applications on the market. For the European Commission, Apple Pay gives too much power to Apple compared to traditional players in the payment industry, such as banks.

Brussels believes that Apple’s way of proceeding risks weaken banking organizations, have become too dependent on the Californian firm in the face of the boom in mobile payment systems. A few days ago, several American banks also opposed 0.15% commission on the amount of each Apple Pay transaction. Faced with the anger of banking establishments, Visa plans to implement a series of changes, depriving Apple of part of its income. Unsurprisingly, the Californian group defends tooth and nail its model.

Also according to Reuters, the European Commission will transmit “A charge sheet known as a statement of objections” to Apple sometime next year. The Cupertino giant would have to comply with new guidelines or face a fine. As a reminder, Europe is free to impose a fine of up to 10% of the firm’s annual turnover, or $ 27.4 billion.

Source: Reuters