The UK’s competition watchdog is taking direct aim at Apple’s control over the iPhone, laying out major proposals designed to open up mobile contactless technology to rival businesses and lower operating costs.
The Competition and Markets Authority (CMA) announced its new blueprint following growing concerns that Apple’s strict access rules and high fees are blocking UK fintech companies from competing fairly. While contactless payments have exploded in popularity across the country, not a single independent firm has managed to launch a competing wallet-type product on iOS in the UK.
In contrast, other regions like the European Union have seen a flurry of alternative payment apps launch shortly after similar regulatory shifts opened up the iPhone’s NFC hardware. Apps from providers like PayPal, Klarna, and Curve quickly emerged abroad, but UK consumers have remained tethered almost exclusively to Apple Wallet, which is used by roughly half of all adults in the country.
To level the playing field, the CMA’s proposals focus heavily on two main obstacles: technical limitations and commercial viability.
First, the watchdog wants to give businesses a genuine choice of underlying technology standards. Currently, Apple restricts developers by only offering access to the secure element standard. The CMA’s proposals would require Apple to support international standards, enabling UK firms to roll out the same advanced payment and digital wallet services already thriving in other markets.
Second, the proposals target the steep costs associated with using the hardware. Even when technical access is possible, exorbitant fees often kill business models before they can launch. While the CMA is not setting exact pricing, it has outlined strict principles expecting charges to be substantially lower while still fairly compensating Apple for providing access.
Regulators stress that unlocking the iPhone’s NFC hardware isn’t just about tapping cards at checkout counters. Opening up the technology is expected to clear the path for a wide array of new digital products and consumer services.
If the proposals go through, UK businesses and startups could soon develop independent digital wallets, advanced age-verification tools, secure digital car and hotel keys, and more.
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