EU to Accuse Apple of Unfairly Blocking Third-Party Access to NFC Payment Technology on iPhone

Apple will be accused of breaking EU law by unfairly limiting access of its mobile payment system on iPhone to third-party service providers, such as PayPal and Venmo, according to the Financial Times, citing sources familiar with the matter.

According to the report, Apple will be accused of "unfairly blocking groups such as PayPal and leading banks from accessing its mobile wallet system" by the European Union and could face heavy penalties if the accusation moves forward. In specific, the EU is taking issue with Apple's restriction of NFC technology on the iPhone, which Apple does not allow third-party app developers to access.

By limiting access to the NFC chip, services such as PayPal, Venmo, banks, and other financial providers, are unable to provide a similar experience to that of Apple Pay for iPhone users. Apple claims that its restrictions on NFC are in place as a safeguard for user privacy and security.

The new development from the EU comes as Apple faces increasing pressure to open its iPhone to third-party app stores and possibly make iMessage a cross-platform messaging service. New details this week of the "Digital Services Act" soon planned to make its way through the European Parliament and the European Council could force Apple to open its iPhones to other app stores and sideloading, a move that CEO Tim Cook warns would fundamentally change the iPhone.