The European Union has opened an investigation into Apple’s NFC chip monopoly after third-party app developer Stu Dingted Apple overpowered its payment features, and Germany was the first to ask the tech giant to let access to the iPhone NFC chip. Banks have long wanted Apple to open up more access to features, but the tech giant has been unmoved. If the new policy goes ahead, Apple Pay will have a number of highly competitive challengers.
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Apple Pay’s monopoly is set to change after Germany voted to pass an anti-money laundering amendment bill. The amendment would require companies to open up the infrastructure of electronic transactions to competitors at a fee.
But it is clear that Apple is not happy with the new policy. In a statement to Reuters, a company spokesman warned that unlocking access to their OWN NFC chips to other mobile payment service providers could have a greater impact on the user experience.
“We are surprised by this sudden new policy and are concerned that the draft law could compromise the user experience and the security of the financial information of the data protection box.”
While Germany is currently the only region to break Apple’s mobile payment monopoly, other markets are likely to follow suit soon, especially in the face of long-standing dissatisfaction with Apple in the banking industry.
In fact, back in 2016, several Australian banks publicly asked Apple to unlock NFC access on the iPhone for use by third-party mobile payment services.