'Antitrust: Commission Seeks Feedback On Commitments Offered By Apple Over Practices Related To Apple Pay' - European Commission
Portfolio Pulse from Benzinga Newsdesk
The European Commission is seeking feedback on commitments offered by Apple regarding its Apple Pay practices, which have raised antitrust concerns. The Commission's preliminary view is that Apple may have restricted competition by limiting access to NFC technology on its devices for payments in stores, benefiting Apple Pay over other mobile payment services. Apple has proposed commitments to address these concerns, including allowing rival mobile wallets to access the necessary hardware and software on equal terms for five years. The Commission is inviting comments from interested parties before making a final decision.
January 19, 2024 | 1:29 pm
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NEUTRAL IMPACT
Apple has proposed commitments to the EU to address antitrust concerns over Apple Pay by allowing competitors access to NFC technology. This could potentially open up the market for mobile payments on Apple devices to other providers.
While the commitments could lead to increased competition for Apple Pay, the impact on Apple's stock may be limited in the short term due to the company's diversified revenue streams. However, investor sentiment could be affected by perceptions of regulatory pressure.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The European Commission's actions regarding Apple Pay may influence the broader European market, potentially affecting the Vanguard FTSE Europe ETF (VGK), which includes Apple as one of its holdings.
VGK may experience indirect effects due to its holdings in Apple and other European companies that could be impacted by changes in the competitive landscape for mobile payments. However, the diversified nature of VGK's portfolio dilutes the impact of any single regulatory action.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 30