UK regulator targets Apple's payment monopoly

The Competition and Markets Authority believes Apple's fees and rules are blocking UK fintechs from innovating and competing in contactless payments.

No rivals exist in UK, unlike the EU

The CMA pointed out that no alternatives to Apple Pay exist in the UK, whereas several can be used in the EU.

Apple restricts the technology rivals can use

When Apple allowed third-party companies to offer alternatives in the UK in twenty twenty-four, they had to use Apple's Secure Element to encrypt payment information.

EU rules allow a cheaper alternative technology

In the EU, Apple must let companies use host card emulation for free instead of the Secure Element. The CMA wants this available in the UK.

Fidesmo CEO accuses Apple of deliberate stifling

Mattias Eld, CEO and Co-founder at Fidesmo, said Apple has spent over a decade using the careful and deliberate stifling of its competitors to dominate tap-to-pay.

“Buying an iPhone should not mean handing Apple the keys to your wallet.”

CMA wants substantially lower fees for access

The CMA is proposing principles for how Apple should determine charges, expecting them to be substantially lower than current fees while still fairly rewarding Apple.

Apple claims lower security would result

Apple told Reuters it does not believe the CMA should require it to adopt an approach with lower privacy and security protections for users.

“We do not believe the CMA should require Apple to adopt an approach with lower privacy and security protections.”

Control, not just revenue, drives Apple's stance

Apple fears that if a third-party contactless provider gets hacked or scams customers, it will reflect badly on Apple itself, threatening the user experience.

EU precedent suggests UK change is coming

Apple has already been forced to open its contactless walled garden in the EU, and the UK might soon follow if the CMA gets its way.