The UK Competition and Markets Authority (CMA) has proposed new measures to reduce Apple's control over contactless payments. The regulator aims to lower fees and remove technical barriers, allowing third-party services to compete with Apple Pay. The CMA previously identified Apple and Google as having a strategic market position in the smartphone sector.
The proposal requires Apple to grant developers access to host card emulation technology alongside existing secure element technology. This follows the EU's 2024 mandate, which required Apple to open its NFC chip to third-party developers. The CMA notes that contactless payments now account for 39% of all transactions in the UK, compared to 3% a decade ago.
Companies like Revolut have expressed support for the initiative, citing the importance of NFC access for fintech innovation. Apple, however, maintains that its current NFC and secure element infrastructure already supports various services while ensuring user data protection. The company argues that the proposed changes could compromise security and privacy standards.
The CMA is currently accepting public feedback on the proposal until November 17, after which a final decision will be made. The regulator believes these changes will foster competition and expand consumer choices within the UK financial technology sector.
