Is Apple's Concession to Rivals In EU a Strategy in EU Tax Battle?

Apple Inc AAPL has proposed allowing competitors access to its tap-and-go mobile payment technology, potentially resolving European Union antitrust charges and avoiding a substantial fine. 

This concession comes after the EU charged Apple last year with limiting competitors' access to its Near-Field Communication (NFC) technology, hindering its ability to offer alternative mobile wallet services on Apple devices, Reuters reports.

PayPal Holdings, Inc PYPL has been pivotal in instigating a formal antitrust complaint against Apple and its iPhone payments system by flagging concerns with the European Commission.

The European Commission will likely seek feedback from rivals and customers next month to determine whether to accept Apple's proposal. 

The details, including the timing of this market test and its confirmation, are still subject to change.

Also Read: Apple Challenges European Commission In Legal Battle Over Digital Markets Act: Report

Apple Pay, which utilizes the NFC chip for tap-and-go payments on iPhones and iPads, is currently used by over 2,500 banks and over 250 fintech and challenger banks across Europe. 

Apple continues to have a tumultuous time with the EU regulators. The iPhone maker could face a €13 billion ($14 billion) tax bill to Ireland as Advocate General Giovanni Pitruzzella of the European Union's top court questions the iPhone maker's earlier ruling victory, citing legal errors.

Price Action: AAPL shares traded higher by 0.55% at $194.24 on the last check Tuesday.