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Apple loses bid to ban protests by French tax campaign group

A French court on Friday threw out a complaint by Apple demanding a ban on protests at its stores by the tax campaign group Attac.

Apple loses bid to ban protests by French tax campaign group
Attac stages a protest against alleged tax evasion by Apple at an Apple store in Paris in December 2017. Photo: AFP

Attac had staged a sit-in at Apple's flagship Paris store on December 2nd, blocking access for several hours in protest at what they claimed was “massive tax evasion” by the US tech giant.

Apple said the demonstration put customers' and employees' safety at risk and sought a court order barring the activists from further protests inside its stores.

Attac had previously held protests at stores in Paris and Aix-en-Provence in November, demanding Apple pay billions of euros which the EU says it owes in back taxes.

But a Paris court dismissed Apple's claim that there was a risk of “imminent damage” from further protests, so long as these were peaceful and did not block access to the store.

It noted Apple had not reported any damage from the peaceful Paris protest in December.

Attac, which branded the lawsuit an assault on the right to protest, hailed the ruling in its favour.

“The court has recognised the legitimacy of our actions and went as far as to say we behaved in the general interest,” said its spokesman Raphael Pradeau.

He added the group has no plans to stop protesting against the company.

Apple did not immediately respond to requests to comment.

In 2016, the EU said Apple owed $14.5 billion in back taxes after it negotiated highly favourable tax arrangements with the Irish government.

The tech giant also came under fire late last year when leaked financial documents known as the Paradise Papers showed it shifted tens of billion of dollars between tax havens to minimise taxes.

Last month the company announced it would pay $38 billion (31 billion euros) on profits repatriated from overseas as it boosts investments in the United States.

Apple, which claims to be the largest US taxpayer, is also one of the biggest beneficiaries of a tax-lowering bill passed by the US Congress in December.

READ ALSO: David vs Goliath: The tiny French consumer group taking on Apple

TECHNOLOGY

Hundreds of German banks make Apple Pay service available for first time

Together with some German banks, Apple is pushing for a change in Germany’s cash-loving culture by making contactless payment via mobile phones more accessible to users.

Hundreds of German banks make Apple Pay service available for first time
Photo: DPA

It’s been a year since the launch of Apple Pay in Germany, and significantly more consumers are now able to use the mobile payment service than ever before. 

READ ALSO: Apple Pay finally launches in cash-loving Germany

On Tuesday, 371 out of a a total of 379 Germans savings banks made the service available for a total of 50 million customers.

Commerzbank, Norisbank, and LBBW (Landesbank Baden-Württemberg) are among the banks now offering the use of the service to their clients.

Integration of popular girocard system still in the works 

As is typical for German banks, only credit cards and debit cards issued by the banks themselves can be integrated into the service.

A system which uses the very popular girocard, previously known as the EC card, is still in the works. This interbank network and debit card service connects virtually all German ATMs and banks. 

The logo of the popular girocard brand, formerly know as EC-Karte. Photo: DPA.

Jennifer Bailey, the head of Apple Pay, said that the service will be integrated into the girocard system in the coming year. 

Extra security 

Apple Pay allows customers to pay using the iPhone or Apple Watch as if they were using a contactless card. The payment method also applies for internet purchases. 

Users are able to unlock and approve the transactions through face identification or fingerprint scanning technology. Bailey emphasized that this technology ensures that the fraud rate is virtually zero with Apple Pay. 

Contactless payment at the cash register relies on the NFC chip technology. NFC stands for “near-field communication,” and works by allowing various devices equipped with the technology to exchange data. Apple's Jennifer Bailey gives a presentation about Apple Pay in Cupertino, CA earlier this year. Photo: DPA. 

 

It is especially secure due to the fact that communication between devices is only possible within about 10 centimeters. 

The banks can only access the NFC via use of Apple Pay, due to Apple’s possession of the special high-security chip within their devices called the “Secure Element.”

German regulation challenges Apple’s dominance 

Germany passed a law in late November that requires platform operators such as Apple to provide financial services, such as banks who use their technology, full access to the infrastructure, such as the NFC, which makes the system work in exchange for a small fee. 

The law ensures that Apple’s rivals in the mobile payment market would still have access to the technology that makes it work. 

The regulation is just one part of recent actions in Germany to regulate US technology companies and their market dominance. 

Commerzbank was one of the banks to adopt the Apple Pay service recently. Photo: DPA.

Apple criticized the law but feels confident overall about accommodating it from a legal perspective. The company emphasized that it already provides access to the NFC chip infrastructure to financial service providers, thus meeting the requirements of the law. 

“When a card is added to the Apple Wallet, banks can decide whether to use it to trigger secure payments from their own apps via NFC. No new law is necessary for that,” the statement said. 

Banks ‘voting with their actions’ 

“Banks are voting with their actions by working with us on Apple Pay,” Bailey said of the bill, in regards to the latest additions and the development of a girocard solution. Apple’s system is still the safest way to pay with the iPhone. 

“The only way to the NFC chip today is via Apple Pay,” Bailey said, expressing concern that any other system would jeopardize user data and security. 

Translated by Kate Brady. 
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