Online Security

apple-settles-eu-probe-by-opening-up-its-mobile-payments-system

Apple settles EU probe by opening up its mobile payments system

A small price to pay? —

iPhone users will get more choices to make “touch-and-go” payments in the EU.

Apple settles EU probe by opening up its mobile payments system

In two weeks, iPhone users in the European Union will be able to use any mobile wallet they like to complete “tap and go” payments with the ease of using Apple Pay.

The change comes as part of a settlement with the European Commission (EC), which investigated Apple for potentially shutting out rivals by denying access to the “Near Field Communication” (NFC) technology on its devices that enables the “tap and go” feature. Apple did not develop this technology, which is free for developers, the EC said, and going forward, Apple agreed to not charge developers fees to provide the NFC functionality on its devices.

In a press release, the EC’s executive vice president, Margrethe Vestager, said that Apple’s commitments in the settlement address the commission’s “preliminary concerns that Apple may have illegally restricted competition for mobile wallets on iPhones.”

“From now on, Apple can no longer use its control over the iPhone ecosystem to keep other mobile wallets out of the market,” Vestager said. “Competing wallet developers, as well as consumers, will benefit from these changes, opening up innovation and choice, while keeping payments secure.”

Apple has until July 25 to follow through on three commitments that resolve the EC’s concerns that Apple may have “prevented developers from bringing new and competing mobile wallets to iPhone users.”

Arguably, providing outside developers access to NFC functionality on its devices is the biggest change. Rather than allowing developers to access this functionality through Apple’s hardware, Apple has borrowed a solution prevalent in the Android ecosystem, Vestager said, granting access through a software solution called “Host Card Emulation mode.”

This, Vestager said, provides “an equivalent solution in terms of security and user experience” and paves the way for other wallets to be more easily used on Apple devices.

An Apple spokesperson told CNBC that “Apple is providing developers in the European Economic Area with an option to enable NFC contactless payments and contactless transactions for car keys, closed loop transit, corporate badges, home keys, hotel keys, merchant loyalty/rewards, and event tickets from within their iOS apps using Host Card Emulation based APIs.”

To ensure that Apple Pay is on an equal playing field with other wallets, the EC said that Apple committed to improve contactless payments functionality for rival wallets. That means that “iPhone users will be able to double-click the side button of their iPhones to launch” their preferred wallet and “use Face ID, Touch ID and passcode to verify” their identities when using competing wallets.

Perhaps most critically for users attracted to Apple’s payment options convenience, Apple also agreed to allow rival wallets to be set as the default payment option.

These commitments will remain in force for 10 years, Vestager said.

Apple did not immediately respond to Ars’ request for comment. Apple’s spokesperson confirmed to CNBC that no changes would be made to Apple Pay or Apple Wallet as a result of the settlement.

Apple’s commitments go beyond the DMA

Before accepting Apple’s commitments, the EC spoke to “many banks, app developers, card issuers, and financial associations,” Vestager said, whose feedback helped improve Apple’s commitments.

According to Vestager, Apple’s changes go beyond the requirements of the EU’s strict antitrust law, the Digital Markets Act, which “requires gatekeepers to ensure effective interoperability with hardware and software features that they use within their ecosystems,” including “access to NFC technology for mobile payments.”

Beyond the DMA, Apple agreed to have its compliance with the settlement “ensured by a monitoring trustee,” as well as to provide “a fast dispute resolution mechanism, which will also allow for an independent review of Apple’s implementation.”

Vestager assured all stakeholders in the European Economic Area that these changes will prevent any potential harms caused by Apple seeming to shut other wallets out of its devices, which “may have had a negative impact on innovation.” By settling the yearslong probe, Apple avoided a potentially large fine. In March, the EC fined Apple nearly $2 billion for restricting “alternative and cheaper music subscription services” like Spotify in its app store, and the suspected anticompetitive behavior in Apple’s payments ecosystem seemed just as harmful, the EC found.

“This reduction in choice and innovation is harmful,” Vestager said, confirming that the settlement concluded the EC’s probe into Apple Pay. “It is harmful to consumers and it is illegal under EU competition rules.”

Apple settles EU probe by opening up its mobile payments system Read More »

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Apple warns proposed UK law will affect software updates around the world

Heads up —

Apple may leave the UK if required to provide advance notice of product updates.

Apple warns proposed UK law will affect software updates around the world

Apple is “deeply concerned” that proposed changes to a United Kingdom law could give the UK government unprecedented power to “secretly veto” privacy and security updates to its products and services, the tech giant said in a statement provided to Ars.

If passed, potentially this spring, the amendments to the UK’s Investigatory Powers Act (IPA) could deprive not just UK users, but all users globally of important new privacy and security features, Apple warned.

“Protecting our users’ privacy and the security of their data is at the very heart of everything we do at Apple,” Apple said. “We’re deeply concerned the proposed amendments” to the IPA “now before Parliament place users’ privacy and security at risk.”

The IPA was initially passed in 2016 to ensure that UK officials had lawful access to user data to investigate crimes like child sexual exploitation or terrorism. Proposed amendments were announced last November, after a review showed that the “Act has not been immune to changes in technology over the last six years” and “there is a risk that some of these technological changes have had a negative effect on law enforcement and intelligence services’ capabilities.”

The proposed amendments require that any company that fields government data requests must notify UK officials of any updates they planned to make that could restrict the UK government’s access to this data, including any updates impacting users outside the UK.

UK officials said that this would “help the UK anticipate the risk to public safety posed by the rolling out of technology by multinational companies that precludes lawful access to data. This will reduce the risk of the most serious offenses such as child sexual exploitation and abuse or terrorism going undetected.”

According to the BBC, the House of Lords will begin debating the proposed changes on Tuesday.

Ahead of that debate, Apple described the amendments on Monday as “an unprecedented overreach by the government” that “if enacted” could allow the UK to “attempt to secretly veto new user protections globally, preventing us from ever offering them to customers.”

In a letter last year, Apple argued that “it would be improper for the Home Office to act as the world’s regulator of security technology.”

Apple told the UK Home Office that imposing “secret requirements on providers located in other countries” that apply to users globally “could be used to force a company like Apple, that would never build a backdoor, to publicly withdraw critical security features from the UK market, depriving UK users of these protections.” It could also “dramatically disrupt the global market for security technologies, putting users in the UK and around the world at greater risk,” Apple claimed.

The proposed changes, Apple said, “would suppress innovation, stifle commerce, and—when combined with purported extraterritorial application—make the Home Office the de facto global arbiter of what level of data security and encryption are permissible.”

UK defends proposed changes

The UK Home Office has repeatedly stressed that these changes do not “provide powers for the Secretary of State to approve or refuse technical changes,” but “simply” requires companies “to inform the Secretary of State of relevant changes before those changes are implemented.”

“The intention is not to introduce a consent or veto mechanism or any other kind of barrier to market,” a UK Home Office fact sheet said. “A key driver for this amendment is to give operational partners time to understand the change and adapt their investigative techniques where necessary, which may in some circumstances be all that is required to maintain lawful access.”

The Home Office has also claimed that “these changes do not directly relate to end-to-end encryption,” while admitting that they “are designed to ensure that companies are not able to unilaterally make design changes which compromise exceptional lawful access where the stringent safeguards of the IPA regime are met.”

This seems to suggest that companies will not be allowed to cut off the UK government from accessing encrypted data under certain circumstances, which concerns privacy advocates who consider end-to-end encryption a vital user privacy and security protection. Earlier this month, civil liberties groups including Big Brother Watch, Liberty, Open Rights Group and Privacy International filed a joint brief opposing the proposed changes, the BBC reported, warning that passing the amendments would be “effectively transforming private companies into arms of the surveillance state and eroding the security of devices and the Internet.”

“We have always been clear that we support technological innovation and private and secure communications technologies, including end-to-end encryption, but this cannot come at a cost to public safety,” a UK government official told the BBC.

The UK government may face more opposition to the amendments than from tech companies and privacy advocates, though. In Apple’s letter last year, the tech giant noted that the proposed changes to the IPA could conflict with EU and US laws, including the EU’s General Data Protection Regulation—considered the world’s strongest privacy law.

Under the GDPR, companies must implement measures to safeguard users’ personal data, Apple said, noting that “encryption is one means by which a company can meet” that obligation.

“Secretly installing backdoors in end-to-end encrypted technologies in order to comply with UK law for persons not subject to any lawful process would violate that obligation,” Apple argued.

Apple warns proposed UK law will affect software updates around the world Read More »

protonmail-vs.-tutanota:-which-encrypted-email-service-is-best?

ProtonMail vs. Tutanota: Which Encrypted Email Service Is Best?

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ProtonMail vs. Tutanota: Which Encrypted Email Service Is Best? Read More »

are-captchas-important?-here’s-what-you-need-to-know

Are CAPTCHAs Important? Here’s What You Need to Know

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Are CAPTCHAs Important? Here’s What You Need to Know Read More »

3-vpn-features-you-should-use-to-avoid-vpn-blocks

3 VPN Features You Should Use to Avoid VPN Blocks

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