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iPhones to facilitate third-party payment apps in Europe

iPhones to facilitate third-party payment apps in Europe

Posted April. 22, 2024 07:51,   

Updated April. 22, 2024 07:51


Starting next month, iPhone users in Europe will be able to use payment systems developed by other service providers, including Samsung Play. Although the policy shift only applies to EU member states, it will considerably impact other regions, including South Korea.

According to Reuters reports last Friday, EU regulators are bound to approve Apple’s payment proposal to facilitate not only its self-developed service Apply Pay but also NFC apps run by its competitors, such as Samsung Pay, on the iPhone operating system.

Behind Apple’s tap-and-go proposal to allow its competitors’ payment methods lie EU-led intense investigations driven by the argument that Apple’s existing policy exclusive to Apply Pay hinders competition and does damage to consumers. Apple stepped back to settle this case as the EU expected to levy fines after four years of the targeted survey. If the EU accepts Apple’s proposal, the business can save itself from paying considerable fines, reported Reuters. Nevertheless, the policy change will take effect exclusively in EU member states.

Since last month, the EU has implemented the Digital Markets Act to strictly regulate tech giants such as Apple, Google, and Meta. Under the act, businesses may face a fine of up to 10 percent of their global annual sales if it is proven that they are involved in limiting competition and giving preferential treatment to their services. Repeated violations may increase this rate up to 20 percent.

The European Commission imposed a fine of 1.84 billion euros on Apple, arguing that Apple abused its dominance in the music streaming app market and blocked consumers from using affordable subscription services. Likewise, last month, the U.S. Justice Department filed a lawsuit against Apple for violating the Sherman Antitrust Act while taking aggressive action against tech giants.

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