A new antitrust investigation has been opened from the European Union against Apple. The technology giant is accused of discriminating against its competitors through its mobile payment system called Apple Pay. The company said a new antitrust lawsuit will be filed next week.
Apple may have broken EU law in the way it uses Apple Pay, according to officials who spoke to the Financial Times about the recent tension between the EU and Apple. Apple Pay, designated as the primary payment service on millions of iPhones, is under scrutiny.
EU launches antitrust investigation for Apple Pay
The lawsuit, due next week, deals with NFC technology used to make contactless payments. The investigations by the EU came after Apple refused to offer NFC payment technology to third-party payment systems. According to EU officials, this could undermine competition with Apple’s competitors using its services.
Apple, which does not currently grant third-party payment services the right to use NFC, says it does this to protect users’ security and privacy. However, the European Commission considers it “illegal” not to open the NFC used for Apple Pay to other companies.
Apple is grappling with a number of antitrust lawsuits, including whether the App Store’s book and music services harm competition. The company, which has become the focus of various investigations in Brussels, may be subject to heavy sanctions with the latest case.
Apple, worth $2.5 trillion, according to Forbes data, will face fines up to 10 percent of its turnover if charges related to the payment service are confirmed.
According to Reuters, Apple faced fines of over 45 million euros as of the end of March. In addition, another noteworthy penalty was that the Consumers and Markets Authority in the Netherlands has fined the company 5 million euros per week since January.
Apple CEO Tim Cook has previously criticized the increasing regulatory pressure they face around the world. Saying that politicians are interfering with the App Store, Cook thinks that data-hungry companies may violate privacy rules.
So what do you think about this lawsuit initiated by the EU for Apple Pay? You can share your views with us in the comments section or on the SDN Forum.
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