Apple to Grant European Developers Access to iPhone NFC Exclusive Payment Features

Following an EU investigation, Apple will open up iPhone NFC features previously exclusive to its own Apple Pay and Wallet software to European developers, The Wall Street Journal has reported.

The tech giant agreed to open up payments to third-party suppliers after the EU's antitrust authority warned the company of unlawful restrictions on competition.

Apple Pay allows users to buy goods by simply tapping their iPhone using a technology called Near Field Communication (NFC). 

However, banks and other potential competitors argued that it was unfair that they were forced to use software controlled by the tech giant.

Under the agreement brokered by the European Commission, Apple will provide alternative providers, third-party mobile wallets and payment services in Europe, with access to its NFC chip on the iPhone to address competition concerns from European regulators. The proposed commitments will be in place for 10 years and could be punishable by a fine of up to 10% of Apple's global annual turnover if the company fails to comply.

The US tech giant said on Friday that it will allow third-party apps to make contactless payments on iPhones and other devices that use its iOS operating system for free, without the need to use Apple Pay or Apple Wallet.

The proposed commitments come just over a year and a half after the Commission formally accused Apple of using its iOS policy to restrict competition in the mobile payments market in breach of EU law. 

Margrethe Vestager, the head of the Commission's antitrust committee, met with Apple CEO Tim Cook in California. Apple Pay is just one of the Apple services that the EU has targeted in its antitrust investigations. 

The Commission has also sided with Spotify and challenged the App Store's rules that prohibit developers from advertising app subscriptions outside of Apple's platform.