Apple Opens NFC for Developers
- Apple now allows developers to use NFC technology on iPhones.
- European Commission had been investigating Apple's exclusive access to iPhone's NFC capabilities.
- Developers will have to pay associated fees for using NFC.
In a significant move to address regulatory scrutiny, Apple announced on Wednesday that it will open its near field communication (NFC) technology to third-party developers. This decision comes after years of investigation by the European Commission into Apple's exclusive control over NFC capabilities, which was seen as a barrier to competition in the mobile payments sector. The company will initially roll out its new NFC and Secure Element APIs in several countries, including Australia, Brazil, Canada, Japan, New Zealand, the U.K., and the U.S., with plans for further expansion. The upcoming iOS 18.1 update will enable developers to create competitive Wallet products and apps that facilitate in-app contactless transactions for various uses, such as in-store payments, car keys, and event tickets. This change is largely a response to the EU's antitrust case, which threatened Apple with fines potentially reaching $40 billion, prompting the company to allow access to its Secure Element mobile payments system. While Apple has previously permitted limited access to NFC technology for reading tags, the new APIs will allow for a broader range of applications. However, developers will need to enter into a commercial agreement with Apple, which will involve fees and specific terms, indicating that this access is not entirely free. This strategic shift is expected to foster innovation as developers enhance existing applications and create new ones, while users will have the option to set third-party apps as defaults for NFC transactions, similar to the current functionality of Apple Pay.