Apple (NASDAQ:AAPL) has pledged to open its tap-and-go mobile payments system to rivals as part of a settlement to resolve a four-year-long antitrust investigation by EU regulators. The pledge has been accepted by EU antitrust regulators, allowing the tech giant to avoid a potentially hefty fine.
Details of Changes Made by AAPL
Apple will open its tap-and-go mobile payments system for 10 years, allowing European developers to integrate various tap-and-go functions within their iOS apps. The technology utilizes near-field communication (NFC), facilitating contactless payments.
Additionally, Apple has confirmed that its Apple Pay service will remain widely accessible, with support from over 3,000 issuing banks across Europe.
EU’s Antitrust Investigation Against AAPL
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.
The EU has acknowledged that Apple’s commitments address concerns regarding third-party access to NFC payments for iOS users in the European Economic Area (EEA).
Had the EU not accepted these commitments, Apple could have faced fines of up to 10% of its global annual turnover. Based on Apple’s FY23 revenues of $383 billion, this would have amounted to approximately $40 billion.
What Is the Price Target for Apple?
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 20%, and the average AAPL price target of $222.64 implies a downside potential of 4.44% from current levels.
