European Commission confirms formal investigation into Apple Pay


The European Commission has confirmed a formal investigation into Apple over competition practices in Apple Pay

It comes after much criticism for the firm,  specifically focusing on Apple Pay’s integration into websites and whether they broke regulations. 

Margrethe Vestager, executive vice president in charge of competition policy at the EC, stated in the announcement: “Mobile payment solutions are rapidly gaining acceptance among users of mobile devices, facilitating payments both online and in physical stores.

“This growth is accelerated by the coronavirus crisis, with increasing online payments and contactless payments in stores. It appears that Apple sets the conditions on how Apple Pay should be used in merchants’ apps and websites. It also reserves the “tap and go” functionality of iPhones to Apple Pay.

“It is important that Apple’s measures do not deny consumers the benefits of new payment technologies, including better choice, quality, innovation and competitive prices. I have therefore decided to take a close look at Apple’s practices regarding Apple Pay and their impact on competition.”

Apple responded to the news offering the following statement: “It’s disappointing the European commission is advancing baseless complaints from a handful of companies who simply want a free ride, and don’t want to play by the same rules as everyone else. We don’t think that’s right – we want to maintain a level playing field where anyone with determination and a great idea can succeed.

“At the end of the day, our goal is simple: for our customers to have access to the best app or service of their choice, in a safe and secure environment. We welcome the opportunity to show the European commission all we’ve done to make that goal a reality.”