"Abuse of Monopoly Position" EU Accuses Apple of Mobile Payment Antitrust Violations

Margrethe Vestager, EU Commissioner for Competition
[Photo by EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] On the 2nd (local time), the European Union (EU) Commission announced preliminary investigation results suggesting that Apple appears to have abused its dominant position by restricting competitors' access to its mobile payment system, 'Apple Pay.'

According to the Wall Street Journal (WSJ) and others, the EU Commission stated in a press release that Apple blocked mobile wallet application developers from accessing the necessary hardware and software on its devices. It prevented access to 'Tap and Go,' which allows wireless payments using credit cards or mobile phones, as well as access to NFTs.

Margrethe Vestager, EU Commissioner for Competition, said, "We have confirmed that Apple restricted third-party access to key technologies necessary for developing mobile wallet applications on its devices," adding, "The preliminary investigation confirmed that Apple abused its dominant position." She further stated, "If these facts are proven, this conduct would constitute an abuse of dominant position, which is illegal under our regulations."

The EU Commission did not disclose the amount of fines that could be imposed on Apple if the allegations are confirmed. However, WSJ reported that fines could be up to 30% of the revenue generated from mobile wallet and related services.

Apple responded, "We designed Apple Pay to allow users to digitally use their existing payment cards and enable banks and other financial institutions to provide contactless payment services to their customers in an easy and secure way," adding, "Apple Pay is just one of several options available to European customers, and we have ensured equal access to NFTs while setting industry-leading standards for privacy and security."

The EU Commission sent this information to Apple in writing. This is one of the formal steps in the investigation of alleged violations of EU antitrust regulations. According to WSJ, Apple can officially object to this and request a hearing before a final decision is made.