Apple could be forced to slash the fees it charges rival payment providers and loosen its grip on iPhone contactless technology under new proposals unveiled by Britain’s competition watchdog.
The Competition and Markets Authority (CMA) said on Tuesday that Apple’s high fees and restrictive terms were stifling competition, preventing businesses from developing alternatives to Apple Pay.
The watchdog has proposed requiring the US tech giant to open up its near-field communication (NFC) technology, which enables contactless payments, on fairer commercial terms.
It expects access charges to fall substantially, although it stopped short of proposing a fixed price.
“We have heard that high fees, strict terms, and technical restrictions relating to Apple’s contactless technology make it too difficult for challengers to innovate and compete”, said CMA chief executive Sarah Cardell.
“By removing barriers to entry, we can help create the conditions for brilliant British businesses with great ideas to develop new products and services here”.
The move could allow iPhone users to make contactless payments through rival apps rather than relying on Apple Pay, while opening up the technology for digital IDs, travel passes and car keys.
Apple introduced a system allowing third-party developers to access its contactless technology in Britain in 2024, but the CMA said no rival wallet-type product had launched through the arrangement.
However, alternative payment services from providers including Paypal and Klarna have launched in the EU following regulatory intervention.
The watchdog is proposing that Apple support both major international NFC standards, rather than the single approach currently available to UK developers.
It would also require Apple to justify its access charges against principles covering costs, value and fairness, with the CMA expecting fees to be substantially lower than current levels.