CMA proposes forcing Apple to open iPhone payment system
Summarised from 3 outlets · Updated 20 Oct, 12:58 · Archive
Britain's competition regulator is proposing to force Apple to open access to its contactless payment technology to rival firms on fairer terms.
The Competition and Markets Authority (CMA) has proposed requiring Apple to open its near-field communication (NFC) contactless payment technology to rival firms on fairer commercial terms. CMA chief Sarah Cardell said firms have reported that Apple's 'high fees, strict terms, and technical restrictions' make it 'too difficult' for challengers to innovate and compete. The regulator expects access charges to fall substantially, though it has not proposed a fixed price.
Apple introduced a system allowing third-party developer access to its contactless technology in Britain in 2024, but the CMA said no rival wallet-type product had launched through the arrangement. The proposals would require Apple to support major international NFC standards rather than its current single approach, and to justify access charges against principles covering costs, value and fairness.
The EU has already taken similar action, requiring Apple to remove fees and allow access to its contactless chip, leading to alternative payment services from PayPal and Klarna launching there. Apple Pay has become the most popular digital wallet choice for UK adults making mobile payments. Apple said it 'does not believe the CMA should require Apple to adopt an approach with lower privacy and security protections' and highlighted the security and innovation its current system enables.
How it is being reported
- UK antitrust regulator wants Apple to open up iPhone NFC accessThe UK is taking aim at Apple's near-monopoly on contactless NFC smartphone payments.Engadget · 20 Oct, 13:42
- Apple faces UK crackdown over iPhone contactless paymentsApple could be forced to slash the fees it charges rival payment providers and loosen its grip on iPhone contactless technology under new proposals unveiled by Britain’s competition watchdog. The Competition and Markets Authority (CMA) said on Tuesday that Apple’s high fees and restrictive terms were stifling competition, preventing businesses from developing alternatives to Apple [...]City AM · 20 Oct, 12:46
- Apple should open access to contactless payment systems, says regulatorThe boss of the CMA said ‘high fees, strict terms, and technical restrictions’ from Apple are impacting other businesses.Evening Standard · 20 Oct, 12:01
In this story: Apple · Competition and Markets Authority · Sarah Cardell · United Kingdom · European Union · PayPal · Klarna
This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem
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