UK requests that Apple widen payment tech access
The UK competition watchdog wants Apple to open its contactless payment technology to rival developers and substantially reduce its fees, arguing the changes could boost innovation in payments and digital services.
The UK competition watchdog is asking Apple to widen access to its contactless payment technology, arguing that the iPhone maker's current restrictions and fees are preventing rivals from developing new financial and travel services.
The Competition and Markets Authority (CMA) said it wants Apple to allow apps to use its contactless technology through Host Card Emulation (HCE), a widely used alternative standard that is currently not permitted on iPhones in the UK.
It also wants the fees Apple charges companies to use its technology to be "substantially lower".
The CMA said the changes could encourage new products including account-to-account payments, digital IDs, travel passes and digital keys.
It said almost two in five payments are now contactless in the UK, while nearly 60 per cent of people use digital wallets, with Apple's wallet the most popular.
Sarah Cardell, chief executive of the CMA, said high fees, strict terms and technical restrictions were making it difficult for companies to compete.
She said: "By removing barriers to entry, we can help create the conditions for brilliant British businesses with great ideas to develop new products and services."
Apple has opposed the proposals, arguing that opening its technology could weaken privacy and security.
The company said its existing system allowed developers to offer contactless transactions for services including payments, transit passes, car keys and event tickets while maintaining strong protections for sensitive data.
Apple said: "We do not believe the CMA should require Apple to adopt an approach with lower privacy and security protections."
The regulator's proposals follow similar intervention in the European Union, where Apple was required to open aspects of its contactless technology to rivals.
The CMA said alternative wallet providers including Vipps, PayPal, Klarna, Curve and BBVA have since launched in the EU.
Apple argues those companies could have launched before the changes.
The CMA said no competing wallet-type product has launched in the UK, despite the country's position as a major fintech hub.
The sector generates more than £214 billion in turnover and supports over 360,000 jobs, according to the regulator.
Apple previously warned UK authorities against following the EU's approach, but the CMA said its proposals would focus specifically on interoperability rather than requiring broader access to Apple's technology.
The regulator is now consulting on the measures.
It said it would not directly set the prices Apple can charge, although it expects its intervention to result in lower fees.
