Facing a company Apple is under scrutiny by Dutch regulators against monopoly over contactless payments platform Apple Pay and access to NFC technology for iPhones.
The Dutch Consumer and Market Authority (ACM) announced Open an investigation On contactless payment platforms on smartphones and the ability of payment applications to NFC technology.
According to the Dutch authority, the program included in some smartphones allows the developer’s payment application to connect to NFC technology only, which prevents external payment applications from also being able to use NFC capabilities.
Apple was not specifically mentioned in the press release, nor any other smartphone manufacturer, but Apple Pay is among the iPhones the only way to pay. Able to use NFC.
And Apple does not allow other financial applications to use NFC technology, which has led to disputes with some banks and financial institutions.
Banks in Australia have petitioned the Australian Consumer and Competition Commission to try to negotiate Apple Pay with Apple.
Banks wanted open access to NFC functionality via iPhones, and the petition was unsuccessful, as access to NFC is still restricted to the Apple Pay platform within Apple devices.
The Dutch Consumer and Market Authority says: restricting NFC via smartphones could stifle innovation in payment apps and reduce freedom of choice for consumers and businesses.
The Dutch authority plans to investigate whether restricting payment apps’ access to NFC reduces freedom of choice, and if this is the end result of the investigation, there may be a penalty, such as a fine.
And according to Agency Bloomberg, Apple Pay is also undergoing an investigation by the European Commission to determine whether Apple’s terms, conditions, and other measures regarding the use of Apple Pay distort competition and reduce choice and innovation.
The European Commission is concerned that Apple Pay is the only mobile payment solution with access to NFC technology via Apple devices.
Apple did not comment on the Dutch investigation in its statement, but said instead: It designed Apple Pay as a simple and secure way for customers to use the payment card of their choice via Apple devices.
“We are working with banks, financial companies and merchants to be the preferred payment option for businesses and consumers across the Netherlands,” she added.