The European Union is considering new regulations, which include Apple Inc. Allows competitors to access competitive technology on their iPhones.
According to documents obtained by Bloomberg, the new regulations will prevent mobile device manufacturers from restricting access to the field’s nearest communication technology, which will be included in other devices such as smartphones and smartwatches.
NFFC technology handles wireless signals that allow customers to pay through their devices at store terminals rather than by credit or debit card. Although Apple’s name is not in the report, currently iPhone and Apple Watch users can only make NFC payments using Apple Pay. Banks and other competitors have complained that their own iPhone apps require similar functionality and do not have access to the Apple chip.
The European Commission will release the report next week as part of a package of policy recommendations. It’s the title of a competition case launched by the European Commission’s Antitrust Division in June, trying to determine whether the iPhone giant is unfairly barring other providers from using tap-and-go functionality on its smartphones.
“In parallel with current and future competition, the Commission will consider whether it is appropriate to propose legislation aimed at gaining access to legitimate, equitable, and non-discriminatory conditions. Services,” the EU document said.
Apple did not answer a request for comment. A commission spokesman declined to comment.
Since the launch of NFC on the iPhone in 2014, Apple has limited the chip to its own Apple Pay service. The company has previously said it will restrict access as part of a system to encrypt customers’ card information. It argues that allowing competing mobile payment applications to access an NFC chip detached from Apple’s additional security layer increases the risk of fraud and other security breaches.
The EU document states that any law “takes into account the potential security and other risks to such security” and sets the criteria for deciding who should be granted access rights and under what circumstances.
Any EU law will be subject to German regulations earlier this year, which will require operators of digital money infrastructure access to competitors at reasonable rates.
The European Commission is examining how to tighten regulation of technology companies providing financial services.
The financial services provided by the new fintech companies have contributed to the damage to the chain, making it difficult for supervisors to monitor losses, the commission said in another document. The commission is taking the advice of European oversight authorities, which will make the necessary legislative changes by 2022.
“The European framework is currently broken and often inappropriate for the digital age,” said Marcus Ferber, a member of the European Parliament. He said the new regulations were “old” and did not require fintech companies to pass them for financial stability and protection of investors.
