UK regulator set to push Apple to open iPhone payment technology – report
Apple is preparing for a legal dispute with the UK competition authority over access to its mobile wallet infrastructure, the Financial Times has reported.
The Competition and Markets Authority (CMA) intends to publish consultation proposals next week addressing Apple’s position in the domestic contactless payments sector.
People familiar with the situation told the publication that the watchdog plans to argue that the company holds unfair control over the UK’s “tap-to-pay” market.
Under the proposals, the CMA will call for changes to iOS that enable iPhone owners to select alternative payment services as their default rather than Apple Pay.
The planned interventions follow the regulator’s decision last year to assign Apple “strategic market status” (SMS) for its mobile platform under new digital competition legislation.
The CMA applies SMS designations to companies with substantial influence in digital sectors. These designations remain in effect for five years and carry penalties of up to 10% of global turnover for non-compliance.
The watchdog held an initial consultation during the summer after financial firms raised concerns regarding Apple’s market position.
Lenders and fintech businesses have specifically challenged the 0.15% fee Apple takes on credit card transactions carried out
In the UK and most other jurisdictions, Apple restricts third-party access to the handset’s Near Field Communication (NFC) chip, which connects devices to retail and transit terminals.
Apple has consistently maintained that limiting NFC access is necessary to safeguard user privacy and prevent fraudulent activity.
Two individuals briefed on the matter said the company is likely to launch a legal appeal against the CMA’s forthcoming directives.
The regulator is expected to propose a framework aligned with the EU Digital Markets Act, which required Apple to open NFC functionality to external wallet providers.
While Apple launched an NFC access framework across several regions in 2024, firms must sign commercial contracts, adhere to specific security standards, and pay “associated fees”.
Arvices from entering the UK, creating obstacles for the domestic fintech sector and limiting technical innovation
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