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apple (NASDAQ:AAPL) bid to open up its near-field communications payment technology to rivals could be approved by regulators in Europe next month, Reuters reported.
In January, Apple (AAPL) offered a 10-year commitment to European Commission, allowing third-party mobile wallets to access its payment chip on iPhones. Apple subsequently made some adjustments to the original terms, the media outlet added, citing people familiar with the matter.
Apple did not immediately respond to a request for comment from Searching Alpha.
At the time, the EC said it was seeking comments on the commitments offered by Apple to address competition concerns.
Other commitments Apple initially offered included allowing third-party payment service providers and mobile wallets to access and interoperate via API, with NFC functionality on iOS devices for free, without having to use Apple Pay or Apple Wallet.
The company would create the necessary APIs to allow equivalent access to NFC components in the so-called Host Card Emulation mode, a technology issued to securely store payment credentials and complete transactions using NFC, without relying on a secure element on the device.
Apple also offered to apply the commitments to all third-party mobile wallet app developers based in the European Economic Area and to all iOS users with an Apple ID registered in the EEA.
Additionally, the tech giant offered to provide additional features and functionality, including disabling preferred payment apps, access to authentication features such as FaceID, and a suppression mechanism; apply fair and non-discriminatory eligibility criteria to grant NFC access to third-party mobile wallet application developers; and establish a dispute resolution mechanism, the agency added.
Last December it was reported that Apple offered to give its competitors access to the tap-and-go mobile payment systems used for mobile wallets in the EU.
The Commission informed Apple of its preliminary opinion in May 2022 that such exclusionary conduct may restrict competition in the market for mobile wallets on iOS devices, in violation of certain EU rules.
The EC noted that Apple Pay allows iPhone users to pay with their mobile devices and these phones work exclusively with its iOS operating system, with which they form a closed ecosystem. Apple controls all aspects of this ecosystem, including access to it for mobile wallet developers.
Ravikash Bakolia of Seeking Alpha contributed to this story.
