UK watchdog says Apple still blocks Apple Pay rivals despite NFC access changes

The UK’s Competition and Markets Authority claims that Apple continues to make it excessively difficult for third-party developers to launch viable alternatives to Apple Pay. According to a report by 9to5Mac, the regulator argues that despite recent adjustments, the terms Apple offers remain impractical for competitors. This assessment comes as the CMA evaluates its proposal to further loosen Apple’s control over the contactless payment chip embedded in iPhones.

The CMA states that developers have reported significant barriers to entry, including high fees, strict contractual terms, and technical restrictions related to Apple’s contactless technology. CMA Chief Executive Sarah Cardell said these factors make it too difficult for challengers to innovate and compete effectively. The regulator has opened a public consultation on its proposed measures to address these issues, signaling a potential shift in how Apple must operate within the UK market.

Regulatory Context and Global Differences

The dispute centers on access to the Near Field Communication chip in iPhones, which enables contactless payments. Initially, only the Apple Wallet app could utilize this hardware for card payments, while third-party apps were restricted to other functions. This exclusivity triggered antitrust actions in multiple countries, forcing Apple to unlock chip access in regions such as the European Union. In the EU, developers can request access by proving they meet industry standards and hold necessary payment processing licenses, with no fees charged.

In contrast, the CMA told Reuters that Apple has not offered developers in the UK the same favorable terms. The regulator’s concern is that the current compromise does not level the playing field, allowing Apple to maintain a dominant position in the mobile payment ecosystem. The public consultation aims to determine if further regulatory intervention is required to ensure fair competition for payment service providers.

Apple’s Response and Stance

Apple has formally rejected the CMA’s proposal, arguing that the regulator should not require the company to adopt an approach with lower privacy and security protections. The company stated it will continue to engage constructively with the CMA to reach an outcome that serves the best interests of its users. This response mirrors Apple’s defensive posture in other regulatory battles, where it emphasizes

What to do and how to stay safe

• Hardware-backed key storage prevents attackers from extracting credentials even if they gain physical access to the device.
• Mobile device management enforces consistent security policies across diverse operating systems and hardware configurations.
• Application sandboxing limits the damage a compromised app can cause by restricting its access to other data and system resources.

Mobile device security requires a layered approach combining hardware, software, and policy controls. Enable encryption, use strong passcodes, and keep your operating system updated to protect your data.

Step-by-step guide: Mobile Device Security: How to Protect Data Beyond Passwords

General security guidance from the Threat Times newsroom. It is not confirmed advice from the organisations named in this story.