Canada Should Investigate Digital Wallets Like Apple Pay, Says Minister
The Competition Bureau should scrutinize the digital wallet market, currently dominated by big tech companies such as Apple, suggests one minister.
That’s according to a letter sent to the bureau by Industry Minister François-Philippe Champagne, who highlighted the actions of other countries to prevent tech giants from becoming monopolies, reports CTV News.
Champagne referenced the EU’s recent decision to force Apple to open up its “tap to pay” iPhone payment system to competitors, thus ending an EU anti-trust case.
The EU had previously accused Apple of denying access to other companies, citing Apple Pay as the largest near-field communication (NFC)-based mobile wallet on the market.
Our neighbours down south are also taking action, with the U.S. Justice Department filing a lawsuit in March alleging that Apple limits third-party access to contactless payment technology. In the United Kingdom, regulators announced plans to examine digital wallets, including potential competition and consumer issues, noting the widespread use of Apple Pay, Google Pay, and PayPal.
The digital wallet marketplace should be fair and competitive, for Canadian companies and Canadian innovations.
Today, I wrote to the Commissioner of the Competition Bureau about this, because a strong economy is a competitive one.
See my full letter below. pic.twitter.com/2idCn5E1kG
— François-Philippe Champagne (FPC) 🇨🇦 (@FP_Champagne) July 16, 2024
In his letter, Champagne acknowledged the independence of the Competition Bureau but emphasized the need for vigilance. “I am confident that you will take appropriate action — as you deem necessary to maintain a competitive economy — should there be evidence of anti-competitive conduct by major industry players,” he wrote.
Canada recently launched a retroactive digital tax that targets U.S. tech giants, and an expected response from the U.S. government is expected to fire back at the new law. The federal government also recently made changes to the Broadcasting Act to force streaming services to contribute to Canadian content, through a 2% levy on revenues.
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Does Apple charge a fee to the merchant or credit card company each time I use Apple Pay?
Yeah
Yes, it’s approximately 15 cents per $100 of transaction volume.
Apple charges a fee (said by another commenter, I do not know the amount) by the card issuer (such as RBC).
It is a minute amount relative to what merchants are charged in total for payments.
Apple does not charge the merchant additional fees for accepting Apple Pay. The transaction fees incurred by the merchant are the same as those for a traditional credit card transaction. Apple gets a portion of the fees collected by the card-issuing banks (CIBC, RBC, etc.) as part of their agreements with Apple.
Pffffft. A Canadian politician concerned about monopolies. Canada really is just 3 corporations in a trench coat.
More like he's concerned he isn't getting a cut
I’m sure Apple went out of their way to ensure that Interac works with Apple Pay as well..
What exactly are these so-called competitors that… want to provide an alternative “over the top” payment method over the credit card fees?
I’m genuinely curious what value add these solutions would have over the security and convenience of {manufacturer} Pay
Maybe the Minister is wanting to bring back Huawei..lol
So you know how our national anthem starts out with, “oh Canada”. Now just add an eye roll when you say it and you’ve got the perfect reply to yet another Canadian politician who actually believes they have a good idea. Nothing worse. A Canadian politician with an idea.
He is preoccupied with Apple Pay, while we are surrounded and robbed by real monopolies: in the alcohol market, supermarket chains, media, airlines!!! Disgusting hypocrisy!
Telecoms…
Every time this guy opens his mouth he proves just how out of touch the government is with Canada's reality.
Everyone else is doing it, so we're gonna do it too, all to make sure there's plenty of spending money for Canada's credit card.
Meanwhile we have the big three Telecoms, airlines, supermarkets and countless other monopolies that are more important to Canadians. The only competition this government wants to win is the one that makes sure consumers are taxed more than anywhere in the world. The recent tax to Netflix and Disney will make sure there are even less Canadian subscribers, not more.
Dumpster fire all the way around
Apple wallet in the USA allows a lot more functionality than in Canada. For example, you can put in your driver's license. You can have a Apple credit card. Why doesn't Canada allow this to happen? Oh yeah, that would mean that Canada wouldn't make as much money. Seems so pathetic how the Liberals/NDP always want more for their friends and the citizens get the short end of the stick.
Is it everywhere in the US, or just a few states? I'm always surprised on how certain Apple functions work when I'm in California, but I think the functionality in most other states is a lot more like what we see in Canada.
You are right. Considering the previous examples, only four states authorize the use of an ID in Apple Wallet ( https://learn.wallet.apple/id#states-list ), and Apple Card is a limitation of the partner, Goldman Sachs, not seeking to expand their presence to other countries.
Odd. I made a comment in here that was like by a user and then disappeared and went to pending…
"Great. Look forward to my banks making me to use their crappy app just to use NFC contactless payments while harvesting all my purchasing data. This is more the government doing the bidding of large corps and financial institutions and definitely not best for consumers.
Look forward to the Canadian version of this… /s"