The European Union is considering new rules that would likely require Apple Inc. to give competitors access to payments technology inside its iPhones.
The new laws would prevent mobile device manufacturers from limiting access to near-field communication technology embedded in smartphones and other devices such as smartwatches, according to documents obtained by Bloomberg.
NFC technology handles wireless signals that allow users to pay via their devices at store terminals, rather than a credit or debit card. While the report did not mention Apple by name, at present iPhone and Apple Watch users can only make NFC payments using Apple Pay. Banks and other competitors have complained they want the same functionality for their own iPhone apps and that Apple won’t give them access to the chip.
The report is set to be unveiled next week by the European Commission as part of a package of policy proposals. It includes a footnote to a competition case launched by the European Commission’s antitrust arm in June, which is seeking to assess whether the iPhone giant unfairly blocks other providers from using the tap-and-go functionality on its smartphones.
“In parallel with its ongoing and future competition enforcement, the Commission will examine whether it is appropriate to propose legislation aimed at securing a right of access under fair, reasonable and non-discriminatory conditions, to technical infrastructures considered necessary to support the provision of payment services,” the EU says in the document.
Apple did not respond to a request for comment. A spokesman for the commission declined to comment.