Apple has escaped heavy charges from the European Commission by deciding to unlock its NFC chip technology to outside companies. This technology enables iPhone users to make payments by simply tapping their phones.

The European Commission (EC) announced that it has made Apple’s promises legally binding under EU antitrust rules. This decision settles an antitrust case and helps Apple avoid a potential fine that could have been in the billions of dollars.

Apple’s Commitments Have Become Legally Binding Under EU Antitrust Laws

The 10-year agreement is mainly built on a proposal Apple made in January. This proposal lets other mobile wallet and payment service providers use the NFC feature on iOS devices through a set of APIs at no cost, without needing to use Apple Pay or Apple Wallet.

Apple plans to build the essential APIs to provide the same access to the NFC features in Host Card Emulation (HCE) mode. HCE is a technology that securely keeps payment credentials and finishes transactions without using a secure element within the device.

This deal covers all developers of third-party mobile wallet apps located in the European Economic Area (EEA) and all iOS users who have an Apple ID registered in the EEA. Furthermore, Apple will not stop these apps from being used for payments in shops outside of the EEA.

Apple is also promising to let users set their preferred payment apps as default, provide access to authentication features like FaceID, and include a way to block unwanted apps. These updates make it possible for HCE payment apps to be used for payments at various certified terminals, including phones used by merchants or devices that act as payment terminals.

Developers Can Now Use NFC Technology Without PSP Licenses

Developers no longer need to have a PSP license or a contract with a PSP to use NFC technology. Apple will also permit developers to access NFC so they can create payment apps for other mobile wallet providers.

According to the European Commission (EC), it decided that Apple’s final commitments would address its concerns about Apple blocking third-party mobile wallet developers from using NFC payments in stores for EEA iOS users. As a result, the Commission chose to make these commitments legally binding on Apple.

Even though the issue might be resolved in Europe, Apple still has problems in the US. There, the Justice Department has included access to the NFC chip technology in its large lawsuit that accuses Apple of dominating the smartphone market.