EU regulatory authorities accuse Apple of restricting competitors' access to payment technology

European antitrust regulators accuse Apple of restricting competitors' access to its payment technology, a move that could potentially force the company to change the way its systems work and face hefty fines.

The European Commission tell in a press release on Monday that it had "notified Apple of its initial view that it was abusing its dominant position in the mobile wallet market for iOS devices."

The Statement of Objections, which the Commission provided to Apple, outlines the alleged breach of European antitrust rules but does not explain the outcome of the investigation. Apple will be able to review and respond to the Commission's findings.

The Commission, the EU's executive body, wrote that it had restricted competition in the mobile wallet market of its iPhone operating system by using the technology used for contactless payments, known as near-field communication (NFC), to have been restricted.

"In our objection, we previously stated that Apple may have restricted competition in favor of its own Apple Pay solution," said Margrethe Vestager, director of competition and executive vice president of the Commission. "If such behavior is confirmed, it will be illegal.

The Commission alleges that Apple's decision not to make its NFC technology available to third-party mobile wallet app developers "foreclosed on competitors and led to less innovation and less choice for iPhone mobile wallet users."

"Apple Pay is just one of many options available to European consumers for making payments, ensuring equal access to NFC while setting industry-leading privacy and security standards," an Apple spokesperson said in a statement Monday. "We would continue to work with the Commission to ensure European consumers can access their preferred payment options in a safe also secure environment.

The Commission separately examines Apple's rules for developers wishing to distribute iOS apps. Europe also recently approved new rules under the Digital Markets Act to limit the dominance of digital platforms that act as gateways to critical services.

US lawmakers similarly discussed Apple's stance on app developers, proposing new rules requiring Apple and others to create a more open environment for potential competitors looking to distribute apps on their phones.