Three of Australia’s biggest banks- Commonwealth Bank, National Australia Bank (NAB), and Westpac- have been denied a request to negotiate a deal with Apple regarding the use of third-party digital wallet software on its iPhones by the country’s antitrust regulator.
These banks argue that in the name of consumer safety, the Cupertino-based company restricts NFC payments technology to its Apple Pay solution on all compatible devices. They assert that this restriction accounts for anticompetitive behavior.
ACCC Denied Request from Australian Banks Denied to Negotiate over Apple Pay
The Australian Competition and Consumer Commission has said that it requires more time to consider the views of the industry, consumers along with the interested parties.
“However, given the complexity of the issues and the limited time available, the ACCC has decided not to grant interim authorisation at this time,” said ACCC Chairman Rod Sims. The ACCC requires more time to consult and consider the views of industry, consumers, and other interested parties.” – ACCC
In its response to the ACCC, Apple had stressed that the banks want to have a complete control over their customers. Hence, they perceive Apple Pay as a competitive threat.
“Unfortunately, and based on their limited understanding of the offering, the [banks] perceive Apple Pay as a competitive threat. These banks want to maintain complete control over their customers. The present application is only the latest tactic employed by these competing banks to blunt Apple’s entry into the Australian market,” Apple said.
All these major Australian banks, which are demanding the access to iPhone’s NFC technology haven’t yet supported Apple Pay.
ANZ which is one of the well-known banks in the country has seen a huge 20% increase in online credit card as well as deposit account applications after rolling out the support to Apple’s mobile payment service.
Having launched in 2014, Apple Pay has become by far the most popular mobile payment service in the world.