According to a source, the European Commission launched an investigation into Apple’s business practices, seeing Apple Pay showing signs of limited competition.
The Commission sent information to market participants to get an idea of the problems, including allegations that the Wallet app on the iPhone does not support competing payment methods. This happened after Apple rivals asked the commission to find out how this company forces users to use its digital payment tool for the iPhone.
The Apple Bank Transfer tool is available on the Wallet app, which is pre-installed on the iPhone. Competitors have expressed concern that Apple has an inherent advantage and uses it, blocking most competitors from accessing the NFC chip needed for contactless payments.
According to Apple, it restricts the use of NFC to protect user privacy and security.
In addition, iPhone users are encouraged to register with Apple Pay with credit card details. If the user skips this step, the iPhone or iPad constantly displays a red warning, informing users that they have not completed the setup.