Is Apple's Concession to Rivals In EU a Strategy in EU Tax Battle?
Portfolio Pulse from Anusuya Lahiri
Apple Inc (AAPL) has offered to let competitors use its tap-and-go payment technology to address EU antitrust charges and avoid fines. The EU had charged Apple with restricting access to its NFC technology, affecting competitors' mobile wallet services. PayPal Holdings, Inc (PYPL) was key in bringing a formal complaint to the EU. The European Commission will seek feedback on Apple's proposal next month. Meanwhile, Apple is also involved in a legal battle over a potential €13 billion tax bill to Ireland.
December 12, 2023 | 7:36 pm
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POSITIVE IMPACT
PayPal Holdings, Inc played a significant role in the EU's antitrust complaint against Apple, which may now be resolved with Apple's concession.
PayPal's involvement in the antitrust case could benefit from Apple's concession, potentially opening up more opportunities for PayPal's mobile wallet services on Apple devices.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Apple Inc's proposal to allow competitor access to NFC technology may resolve EU antitrust charges and avoid fines, but faces a €13 billion tax bill issue.
Apple's concession could mitigate regulatory risks and fines, which is positive, but the ongoing tax battle with the EU presents a significant financial risk, creating uncertainty for the stock.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90