Apple Wary of RBA After Conceding to European Banks
(23 January 2024 - Australia) Apple wants clarity around when the Reserve Bank would be able to deploy new powers allowing it to create rules on bank access to the tech giant’s tap-and-go mobile payment system, after Apple said it would allow European bank apps to make payments with iPhones without sending them through Apple’s digital wallet.
Apple provided the concessions in Europe as part of moves to settle antitrust charges brought by the European Commission, which has been investigating banks’ access to the Apple Pay system, Reuters reported at the weekend.
The AFR is reporting Apple wants the Australian government to rethink new RBA powers.
The case arose because Apple restricts access to its near-field communication (NFC) technology, which lets iPhones communicate with payment terminals.
Currently, all contactless payments that use iOS-based devices, such as iPhones and Apple Watches, are sent through Apple Pay. The EU says that, by limiting third-party access, Apple is making it tougher for banks to develop rival mobile wallets, which are becoming a more common way to pay.
The Australian Competition and Consumer Commission has been examining similar issues after the big banks flagged concerns eight years ago that Apple’s payments architecture was “closed and controlling”.
The federal government is consulting on new laws that would expand the powers of the RBA over Apple and other global payments platforms.
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