German law would make it mandatory to open access to NFC payments other than Apple Pay. They consider that preventing access to hardware is an abuse of a dominant position that must end.
Apple may be forced to allow rival payment services on iOS to compete with its own Apple Pay service. At least in Germany, as the country's parliament voted in favor of certain measures on Thursday, reports Zeit Online. The legislation comes in the form of an amendment to an anti-money laundering bill. It will have to pass through the country's upper house before it can become law next year. This would cause Apple to lose market share in Europe, losing a control that helps it maintain its leading position in the United States.
If these measures become law, then, in Germany, Apple could be forced to allow other companies to access the NFC chips in its phone. Something that historically has strictly controlled access. The change could result in individual banks offering NFC payments through their own apps, rather than going through Apple's service. Apple would reportedly be allowed to charge a fee for access to the NFC chip, but would not get the 0.15 percent fee that it currently receives from every Apple Pay transaction.
More freedom when paying with mobile
The move would bring iOS closer to Google's model for Android, where users can use competitive mobile payment services for Google Pay. One of the biggest rivals is Samsung Pay and it is not doing badly at all. German law does not specifically mention Apple but applies to e-money infrastructure operators. Competitors of Apple Pay are being forced to use more cumbersome methods like QR codes to offer payment functionality on iOS.
Unsurprisingly, Apple does not seem happy with the development and claims that it will pose a problem when it comes to managing user data. Zeit A German politician claimed that the US Embassy intervened to avoid the decision, and Chancellor Angela Merkel had also lobbied for the amendment to be withdrawn.
German lawmakers aren't the only ones with Apple Pay in their sights. Margrethe Vestager, the EU antitrust chief, is considering an investigation into the continental service. It would cause the measure to be applied throughout the European Union.
Source: The Verge
