The UK's antitrust watchdog stated that Apple Inc.'s control over the iPhone hinders competition from fintech companies using its digital wallet, and proposed forcing the tech giant to provide access to its contactless technology.
The Competition and Markets Authority's (CMA) proposal aims to simplify competitors' access to Apple's contactless technologies and ensure this access at a 'significantly lower rate.' This initiative is part of an investigation following which the regulator deemed Apple dominant in the mobile ecosystem sector, raising concerns about high fees and restrictions for firms using iPhone contactless technology.
The CMA announced on Tuesday that 'fintech companies are a British success story, but Apple's fees and rules for accessing key mobile contactless technology, known as near field communication, may impede their ability to innovate and grow.' Unlike the situation in the EU, no company in the UK has launched a wallet product to compete with Apple's offerings.
Adopting this decision could potentially strengthen fintech companies such as PayPal Holdings Inc., Revolut Ltd., and Monzo Bank Ltd. According to a UK Finance study, the share of contactless payments reached 39% of all card transactions in 2026, up from 3% a decade ago, and over 60% of the UK's adult population uses digital wallets. British regulators have long sought to increase competition among digital wallet providers and promote account-to-account payments independent of card networks like Visa Inc. and Mastercard Inc.
In response, Apple stated that it has enabled developers in the UK and globally to securely offer contactless transactions directly within their applications. The company added that it does not believe the CMA should require Apple to implement approaches with reduced levels of privacy and security protection.
The supervisory body will consider feedback on its proposals until November 17, after which a final decision will follow. Previously, the CMA found that Apple and Google (Alphabet Inc.) had effectively created a duopoly in mobile platforms, necessitating closer scrutiny. Both companies agreed to make changes to alleviate the regulator's concerns regarding compatibility in iOS and ensuring fairer terms for app developers on their platforms.
The status of a strategic market does not imply wrongdoing but subjects firms to more rigorous regulatory oversight and behavioral requirements. David Tirado, Commercial Director of Revolut, noted: 'Opening this infrastructure is a critical step towards stimulating genuine competition. The CMA's direction creates a real opportunity for British fintech companies to compete on equal footing with Big Tech.'