The likelihood that Apple will have to pay billions of euros to the European Union increased dramatically today. The European Commission says the company is guilty of abuse of power.
It’s an accusation that Apple has faced many times before, but today the situation is different than before. The European Commission now officially suspects the company and is launching an extensive investigation.
Billions fine hangs over Apple’s head
By making the so-called NFC chip in the iPhone and iPad available only to itself, Apple is guilty of abuse of power, according to the European Commission. In doing so, the company is violating European competition rules. The chip is mainly used for contactless payments. Something with which Apple puts players like PayPal and banks out of action, according to the European Commission.
As mentioned, further investigation into the whole situation is now underway. Should this actually reveal what the European Commission already thinks, Apple may pull out its wallet. In this case, the American company will have to hand over a maximum of 10% of its annual turnover to the EU. An amount that, in the case of one of the most valuable companies in the world, could run into the billions.
Tap to Pay (Image: Apple)
Of course, that’s a condensed version of what the European Commission put out today. Want to know in detail what Apple is doing wrong? You can read the full statement at this link.
USB-C and the App Store
This is certainly not the first time Apple has had to deal with such suspicions. The American company has been accused of this for ages by keeping the App Store closed and making developers pay a portion of the revenue. Then there is also the situation with the charger for iPhones. Apple has been using the Lightning port for years, but the EU no longer sees that either.
Curious about that whole story? You can read it via the link above.