Apple faces UK crackdown over iPhone contactless payments
Apple 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 [...]
The UK's Competition and Markets Authority (CMA) has proposed measures to reduce Apple's control over iPhone contactless payments, potentially benefiting rival payment providers. The watchdog believes Apple's high fees and restrictive terms are impeding competition, preventing businesses from developing alternatives to Apple Pay.
To address this, the CMA has suggested opening Apple's near-field communication (NFC) technology on fairer commercial terms. This move could allow iPhone users to make contactless payments through rival apps, and open up the technology for digital IDs, travel passes, and car keys. Although Apple introduced a system for third-party developers to access its contactless technology in 2024, no rival wallet-type product has emerged from this partnership.
Fintech and banking industry representatives have welcomed the proposed crackdown, expecting it to broaden competition in the contactless payments network. The CMA expects access charges to decrease significantly, although it did not specify a fixed price. Apple has expressed concern over the proposal, stating that it does not believe the CMA should require the company to adopt lower privacy and security protections.
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