[Asia Economy Reporter Jeong Hyunjin] The European Union (EU), which has recently introduced a series of bills aimed at shaking the power of big tech (large information technology companies), raised concerns on the 2nd (local time) about Apple’s abuse of its monopolistic position. The EU released investigation results suggesting that Apple appears to have restricted competitors’ access to its mobile payment system, Apple Pay, drawing attention to whether the EU will make Apple the first subject to apply these bills.
According to the Wall Street Journal (WSJ) and others, the EU Commission issued a statement on the day revealing preliminary investigation results that Apple blocked mobile wallet application developers from accessing the necessary hardware and software on its devices, including the iPhone. It was found that Apple prevented other developers from accessing “tap-and-go” wireless payment using credit cards or mobile phones, as well as access to non-fungible tokens (NFTs).
Margrethe Vestager, EU Commissioner for Competition, said, “We have confirmed parts where Apple restricted third-party access to key technologies necessary for developing mobile wallet apps on its devices,” adding, “The preliminary investigation confirmed that Apple abused its dominant position.” She further stated, “If these facts are proven, this conduct will constitute an abuse of a dominant position, which is illegal under our regulations.”
The EU Commission began this investigation in 2020 and released the results after two years, sending the findings to Apple in writing. This is one of the official stages 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. If the allegations are confirmed, Apple could be fined up to 30% of the revenue earned from mobile wallet and related services, WSJ reported.
Apple stated, “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.”
Apple has already clashed several times with the EU over regulatory violations. Since the EU ordered Apple to pay 13 billion euros in taxes in 2016, litigation has been ongoing, and last year the EU raised issues regarding Apple’s in-app payment system, with investigations currently underway. Besides Apple, the EU has been in conflict with major big tech companies such as Google and Meta Platforms over antitrust issues for years, continuing related investigations and lawsuits.
This investigation result comes as the EU has been announcing the Digital Markets Act (DMA), which prevents market monopolies by big tech, and the Digital Services Act (DSA), which imposes obligations on online platform operators to crack down on illegal content. The EU emphasizes that these laws will limit the monopolistic positions of big tech and enable fair competition in the market. These bills will take effect next year. When asked whether the investigation into Apple Pay could be completed before these laws are enforced, Commissioner Vestager said, “It will take some time before the DMA comes into effect,” adding, “Of course, we will conduct the investigation as quickly as possible.”
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