The European Commission opened a formal probe in June 2020 over potential monopoly abuses tied to digital wallet and payment services on iOS devices. After nearly two years, Brussels issued a statement of objections outlining concerns that Apple used its dominant position to restrict access to the core technology used for creating competing e-wallet solutions, especially for in-store contactless payments via near-field communication (NFC).
In Brussels’ account, Apple appears to be limiting third‑party access to essential technology, at first glance to favor Apple’s own solution, Apple Pay. If these actions are confirmed, they would breach competition rules. Margrethe Vestager, the European Union’s competition chief, cautioned about the potential illegality of such conduct and indicated that any fine would depend on the investigation’s findings. Apple, for its part, has argued that the restrictions were justified by security concerns. However, the Commission has stated that, to date, the evidence does not support a strong security justification and that the record does not point to a security risk that would outweigh consumer interests.
In-store and online payments
Apple Pay remains Apple’s proprietary mobile wallet, available to users on iPhones and iPads for purchases in physical stores and online. Brussels contends that Apple’s devices and software form a closed ecosystem, with Apple controlling how developers access the infrastructure for mobile wallets. The preliminary findings suggest that Tim Cook’s company holds substantial market power in both the smart device space and the mobile wallet sector.
The Commission argues that Apple Pay is the sole mobile wallet that can access the required NFC login within iOS, and that this access is not offered to third‑party wallet developers. NFC technology, embedded in Apple devices for in-store payments, enables communication between the phone and payment terminals. NFC is a standardized, widely adopted technology that supports fast, secure, and seamless payments. Relative to alternative solutions, NFC-based payments tend to offer smoother experiences and broader acceptance across Europe.
Fewer innovations and options
According to the Commission’s report, Apple’s dominant position in the iOS mobile wallet market creates a barrier by restricting NFC access to Apple Pay. The watchdog warns that this could foreclose competition and stifle innovation, ultimately reducing the variety of wallet options available to iPhone users. If the objections are borne out, the behavior could infringe Article 102 of the Treaty on the Functioning of the European Union, which prohibits the abuse of a dominant market position.
Submitting a statement of objections is an early procedural step in the process. It does not determine the case’s outcome but signals that the Commission has questions about whether third‑party wallet developers can access the NFC component for in-store payments. The document provides formal notice to Apple of the alleged violations, enabling a detailed written response. Apple also retains the right to request an oral hearing. As with many antitrust investigations, there is no fixed timetable; the duration depends on case complexity, cooperation from involved parties, and the execution of defenses. The rights of those under scrutiny are preserved throughout.