Apple will be hit with an EU antitrust charge over its NFC chip technology.
That's according to sources close to the matter.
The move could see the tech giant hit with a big fine.
It could also force Apple to open its mobile payment system to rivals.
EU antitrust leader Margrethe Vestager launched an investigation into Apple Pay in June last year.
The European Commission has focused mostly on Apple's NFC chip, which enables tap-and-go payments on iPhones.
A source told Reuters the EU competition enforcer is preparing a charge sheet which could be sent to Apple next year.
Documents like that usually set out practices seen as anti-competitive by the regulator.
The Commission refused to comment when approached by Reuters.
Apple has said that privacy and safety is the main reason for its policy around mobile payments.