Apple could face a fine up to 10 per cent of its global turnover or $36.6 billion based on its revenue last year

Apple was hit by a formal antitrust complaint from the European Union for restricting access to technology and services that allow users to make payments direct from their iPhone.

Apple could face a fine up to 10 per cent of its global turnover or $36.6 billion based on its revenue last year, though EU penalties rarely reach the cap.

The European Commission said on Monday it sent a so-called statement of objections alleging how the tech giant abuses its dominance over mobile wallets on its devices via its Apple Pay service.

We have indications that Apple restricted third-party access to key technology necessary to develop rival mobile wallet solutions on Apple’s devices, EU antitrust chief Margrethe Vestager said in a statement. The EU’s charge sheet makes a preliminary finding that the company ‘may have restricted competition, to the benefit of its own solution.’

The Apple Pay probe was part of two cases the European Commission opened in June 2020 amid efforts by Vestager to rein in powerful big technology companies. It follows the EU’s decision in 2016 to hit Apple with a record 13 billion-euro ($13.7 billion) tax bill, which is subject to a pending court case following the company’s successful appeal at a lower EU court.

Apple argued that its approach might anger big banks in Europe, some of whom have sought better deals to access Apple Pay. Apple says that it gives all banks equal access to the payment system, with 2,500 banks in Europe connected, as well as smaller fintech companies and challenger banks.

We designed Apple Pay to provide an easy and secure way for users to digitally present their existing payment cards and for banks and other financial institutions to offer contactless payments for their customers, Apple said in a statement, saying it will ‘continue to engage with the commission’.