The UK’s Competition and Markets Authority (CMA) opened a consultation today on proposals that would require Apple to give UK businesses access to the iPhone’s near field communication (NFC) contactless technology via the main international standards. The regulator expects the charges produced under its proposed pricing principles to come in well below Apple’s current fees, while still rewarding Apple fairly.
The CMA does not intend to set the price and conditions of access itself; instead, its proposals lay out principles for how they should be determined. It argues that the fees Apple charges, its contract terms and its technical restrictions constrain innovation and competition among UK fintechs and other businesses.
No wallet-style rival to Apple has launched in the UK, the CMA noted. The EU tells a different story: once Apple committed to opening up NFC payments there, Vipps released the first alternative payment app within half a year, and PayPal, Klarna, Curve and BBVA have since followed.
Sarah Cardell, the CMA’s chief executive, said: “These proposals open the door to more innovation, more choice and economic growth, including in the UK’s important fintech sector.” David Geale, executive director for consumers, payments and competition at the Financial Conduct Authority, said: “We welcome steps the CMA has taken to boost competition and innovation.”
The proposals could enable UK services such as account-to-account payments, digital IDs, age-verification tools, travel passes, and digital car, hotel and workplace keys. Contactless payments now account for 39 per cent of all UK payments, up from 3 per cent a decade ago, and more than 60 per cent of UK adults use a digital wallet, with Apple Wallet the most popular.
The CMA has not published a closing date for the consultation, and it has not specified exactly what Apple charges for NFC access today.