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Dutch antitrust regulators launch probe into Apple Pay

The Netherlands Authority for Consumers and Markets has turned a critical eye to manufacturers that limit access to any smartphone's near-field communications system.

Apple was not named directly in the probe. However, the Cupertino tech giant has a long history of being criticized for limiting access to the iPhone NFC chip, making it clear who the investigation targets.

Banks and competing financial companies worldwide have complained that by limiting access, Apple forces users to only use services compatible with Apple's own Apple Pay.

According to Bloomberg, the Dutch authority "will investigate whether limiting the payment apps' access to NFC communication reduces the users' freedom of choice," it said. If it "does establish a violation, it may result in a penalty, such as a fine."

As usual, Apple's response to the criticism is to remind both investigators and consumers that Apple Pay limits access to the NFC system for security purposes.

The probe comes at a time when Apple is facing increased scrutiny over anticompetitive behavior both at home and abroad. In October, the U.S. House Judiciary subcommittee accused Apple of holding a monopoly over the distribution of apps on iOS devices via the App Store.



51 Comments

sflocal 16 Years · 6138 comments

This sounds like a similar situation that went on in Australia when certain banks filed a lawsuit demanding NFC access.  They lost and eventually allowed ApplePay.

This all comes down to who has control of the end-user's information.  The banks want to use their own banking apps for NFC so they could harvest all our personal information and transaction history, sell it to the highest advertising bidder, and figure out ways to extract more from us.

ApplePay on the other hand is secure, and I can trust Apple in making sure that the security between phone and receiver is hardened.  Sure, Apple gets a cut of transaction fees from the bank, but what the banks aren't advertising the the amount of money saved due to not having issues with fraudulent transactions.  

2019 figures say that the banking industry lost $27.85B dollars worldwide due to credit card fraud.  I would think ApplePay has saved quite for banks.

I have zero faith in banks to keep my info private and secure.  I as a consumer am happy that Apple keeps NFC locked out.  It's their hardware/software package, their widget.  Screw the banks.  They either offer their services via ApplePay, or they don't get my business.

mobird 20 Years · 758 comments

Apple should make a "limited edition" iPhone
sans a nfc chip just for countries/governments that impose this.

22july2013 11 Years · 3736 comments

mobird said:
Apple should make a "limited edition" iPhone [without] a nfc chip just for countries/governments that impose this.

Good idea, or it could be the exact same iPhone with the NFC chip disabled by software when the GPS detects that the iPhone is located in the Netherlands. Apple has already done this with things like the ECG feature in the Apple Watch. Unless you are from a certain country, you couldn't access the ECG feature. This was to satisfy regulators who hadn't approved the ECG feature for health purposes.

22july2013 11 Years · 3736 comments

I am so, so, so excited about some government trying to micromanage Apple's services to the point where Apple just gives up and says, "Fine, we won't sell iPhones or internet services to anyone in your country. Buh-bye." Let's see how that helps consumers in the Netherlands "increase their freedom of choice." Doesn't the Dutch government understand that the iPhone itself IS a choice? The only way that the Netherlands could mandate this is if they made the iPhone the only legal smart phone that anyone in the Netherlands could ever use. In that case I would back them up. Android has a 57% share of smartphones in the Netherlands and iOS has 42%, and they want to boot iOS out of their country? How does that increase choice? That will hand a 99% marketshare to Android. Where's the choice then?

macca 13 Years · 27 comments

This is pot calling the kettle black! The local transport authority in Amsterdam (GVB) (I’m sure it’s the same for other cities) and national rail (NS) have a contactless card system that you have to use called the ov chip card. 

Unlike places like London you can’t use Apple Pay / google pay or other contactless bank cards. 

They should first start with opening these systems up first before going after other companies!