In response to competition concerns raised by European regulators, Apple (NASDAQ:AAPL) has decided to permit third-party mobile wallet and payment services in Europe to utilize the technology underlying its Apple Pay app. Apple announced that it would enable other companies’ apps to conduct contactless payments on iPhones and other iOS-operated devices at no cost, eliminating the requirement to use Apple Pay or Apple Wallet. This decision follows an investigation by the European Commission into whether Apple’s restriction of access to NFC (near field communication) technology violated competition rules.

The move to open up access to NFC technology is a concession made by Apple after discussions with the European Commission. Apple Pay, which is widely used across Europe by more than 3,000 issuing banks, will remain available as a broad option. Under the proposed change, European consumers using their mobile devices for payments can choose between Apple Pay and an app enabled by iOS. Users will have the flexibility to change their default payment method at any time.

By offering concessions to address the commission’s concerns, Apple aims to resolve the case and avoid potential fines. The European Commission is now seeking feedback from Apple’s competitors on the proposed changes. If competitors find the commitments sufficient, the commission can make them legally binding. Failure to comply with these commitments could result in fines of up to 10% of Apple’s global revenue. This concession by Apple applies to developers in the European Economic Area, encompassing the EU, Iceland, Liechtenstein, and Norway. Third-party apps would function for all iOS users in this area, and Apple would not prevent the use of these apps for payments outside the region.