The American company Apple has avoided threats of fines from European Union regulators by agreeing to open its Apple Pay mobile wallet technology to other providers free of charge for 10 years. This is reported by Bloomberg.
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The EU warned that restricting access to the technology was an abuse of the company's market power. Under the terms of the agreement, consumers in Europe will be able to use alternative digital wallets to pay for goods and services.
The agreement is a temporary truce between the EU and Apple, the company's long-running regulatory compliance conflict.
Opening the payment gateway Apple's technology will allow third-party developers to access it and create alternative mobile wallets for European users.
The commitment remains binding for 10 years, and Apple risks a fine of 10% of global annual revenue if it breaks the deal.
The requirement could be a seismic shift in the payments industry, which has long sought to use Apple’s wireless technology in its digital wallets.
With the new access, players like PayPal, Google Pay and Samsung Pay will be better able to compete and entice more European customers to use their apps rather than Apple Pay when paying in stores.
If the requirement extends to the U.S., where Apple faces a similar complaint from the Justice Department, it could help players like Block Inc.’s Square gain traction with consumers.
Since its debut a decade ago, Apple Pay has become the most dominant and widely used digital wallet on the market. Across Europe, users are now turning to the app to quickly pay for everything from public transport to groceries and restaurant bills.
