Apple (NASDAQ:AAPL) is likely to avoid a huge fine and put an end to a long-running antitrust investigation in the EU by allowing rivals more access to its contactless technology for its mobile payments system.
In 2022, the European Commission charged Apple with breaking competition law, alleging it restricted competitors from accessing its “tap-and-go” chips, or near-field communication (NFC) chips, to favor its Apple Pay system.
According to an exclusive Financial Times report, regulators in the EU have accepted the changes suggested by the tech giant earlier this year.
Changes Suggested by AAPL
The changes suggested by AAPL include providing developers free access to its NFC technology on iOS devices without having to use Apple Pay or Apple Wallet. AAPL has offered to provide this access for 10 years. Apple has also stated that its Apple Pay service will continue to be broadly available, with over 3,000 issuing banks in Europe offering the service.
If AAPL manages to reach a deal with the EU, it would help the company avoid a fine of up to 10% of its total worldwide annual turnover. By these calculations, AAPL clocked revenues of $383 billion in FY23, and 10% of these revenues would mean a fine of around $40 billion.
Is Apple a Buy, Sell, or Hold?
Analysts remain cautiously optimistic about AAPL stock, with a Moderate Buy consensus rating based on 24 Buys, 10 Holds, and one Sell. Over the past year, AAPL has increased by more than 10%, and the average AAPL price target of $209.28 implies a downside potential of 2.7% from current levels.
