Apple Inc’s control over the iPhone is blocking fintech rivals from competing with its digital wallet, the UK’s antitrust watchdog said, proposing to force the Big Tech firm to open up its contactless technology.
The Competition and Markets Authority (CMA)’s proposal aims to make it easier for rivals to access Apple’s contactless technology at "substantially lower fees.” The proposal is part of an investigation after the regulator designated Apple as being dominant in the mobile ecosystem sector, and raised concerns over high fees and restrictions on firms to access the iPhone’s contactless technology.
"Fintechs are a UK success story, but Apple’s fees and access rules for key mobile contactless technology, known as near field communication, risk blocking their ability to innovate and grow,” the CMA said in a statement on Oct 20. "Unlike in the EU, not a single firm has launched a wallet-type product to compete with Apple’s in the UK.”
The decision, if finalised, will boost fintech firms such as PayPal Holdings Inc, Revolut Ltd and Monzo Bank Ltd. Contactless payments have grown to 39% of all card payments in 2026 from just three per cent a decade ago, and more than 60% of UK adults use digital wallets, according to a UK Finance study.
British regulators have long sought more competition among digital wallet providers and have promoted account-to-account payments without relying on card networks such as Visa Inc and Mastercard Inc.
"Apple has made it possible for developers in the UK and around the world to securely offer contactless transactions directly within their apps,” Apple said. "We do not believe the CMA should require Apple to adopt an approach with lower privacy and security protections.”
The watchdog will seek views on its proposals until Nov 17, with a final decision to follow.
The watchdog previously found Apple and Alphabet Inc’s Google had an effective duopoly over mobile platforms and needed deeper scrutiny. The two companies offered to make changes to allay the regulator’s concerns. The changes related to interoperability on iOS and making their platforms fairer for app developers.
The so-called strategic market status designation doesn’t imply wrongdoing but exposes the firms to greater regulatory scrutiny and conduct requirements. – Bloomberg
