Apple will have to face an antitrust lawsuit from the European Union over its NFC chip technology, in a move that could put the tech giant at risk of being fined huge sums and forcing it to open its payments system to competitors.
Apple has been under fire from EU antitrust chief Margrethe Vestager since June last year when she launched an investigation into the Apple Pay system.
Initial concerns were the company’s NFC chip that enables fast payments services on iPhones, terms and conditions for how Apple Pay can be used within merchant apps and websites, and Apple’s refusal to allow competitors to access the payments system, and since then, the European Commission’s focus has been limited to the NFC chip, which can only be accessed via Apple Pay.
The EU competition body is preparing an indictment, known as a “statement of objections,” which it will be able to send to Apple next year. Typically, such documents refer to practices that the regulator considers anti-competitive, and companies could be fined up to 10% of global revenue for allegedly breaking EU laws, meaning Apple could be fined up to $27.4 billion based on 2020 revenue.
Notably, the company is facing a similar case in India regarding its app store policies. Read more [Apple Faces Serious Antitrust Case In India], according to the stock market, Apple’s stock fell 1% to $139.6 in early trading.