Mike Peterson
Apple said potential legislation that would force it to open up Apple Pay technology to third parties threatens security and innovation.
The European Union is currently weighing new rules that would compel Apple to open up the contactless payment systems at the heart of Apple Pay. In a statement on Thursday, Apple said the new rules weren't a good idea.
"We believe legislation that dictates a company's technical approach to hardware and software security will ultimately put customers at risk and stifle innovation," an Apple spokesperson told Bloomberg.
Additionally, the spokesperson said that Apple plans to work with the European Commission to "help them understand the benefits of Apple."
The Cupertino tech giant currently limits access to the near-field communication (NFC) chip within the iPhone and Apple Watch. It argues that a closed system is better for security when handling sensitive bank information.
In 2019, the EU began asking payment companies in Europe about Apple Pay as part of an antitrust investigation. The European Commission formally launched an antitrust probe scrutinizing Apple Pay in June.
This isn't the first time that Apple's NFC restrictions have come under antitrust scrutiny.
In 2015, a coalition of major Australian banks sought to boycott Apple Pay in an attempt to negotiate third-party access to the NFC hardware within Apple devices. The banks eventually backed down after the Australian Competition and Consumer Commission denied their boycott request in 2017.
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35 Comments
Apple, at some point you are going to have to take a revenue hit and dump problematic regions from certain services to set an example.
I think it's Apple that doesn't understand at least part of the problem.
And as things stand, nothing has been approved or formalised.
The EU stance is clear. Apple shouldn't have any issue with it and it has zero to do with stifling innovation (and innovation cannot come before competition rules anyway).
Apple has to offer something to reflect its own stance but this statement is very poor.
If, the EU decides that Apple is restricting competition (and that's a big if) its options are clear and simple.
We buy Apple products also for specific characteristics. Privacy, innovation and quality are very important. iOS isn’t an open source, it is a property of Apple inc. and we love it! No open to third part service also about Nfc mobile payments.
Not surprised by this. The EU bureaucracy and it’s supporters are rapidly anti-American and don’t like free competition or free-trade: its a protectionist trade block by definition.
I’m amazed there are still Americans that wonder why we Brits choose to escape the EUs creeping authoritarianism...