Australia denies banks approval to jointly negotiate with Apple on ApplePay fees

Reuters:

Australia’s anti-trust regulator on Friday said it would not grant the country’s three biggest banks interim approval to collectively negotiate with Apple Inc to install their own electronic payments applications on iPhones.

Australia’s three biggest banks, including the number one lender National Australia Bank (NAB), last month lodged a joint application seeking permission to negotiate as a bloc from the Australian Competition and Consumer Commission (ACCC).

The ACCC said that its decision not to grant the banks the interim ruling was not indicative of whether the full ruling, expected in October, would be successful or not.

And:

Apple, which operates its own Apple Pay mobile wallet, does not allow third-party electronic payment apps to be loaded onto to the hugely popular smartphones. The banks are seeking to be able to negotiate jointly for access to Apple’s phones without themselves being accused of violating anti-competition law.

The three Australian banks contend that while Apple allows apps on iPhones using other commonplace technology, such as Wi-Fi and Bluetooth, restricting the technology through which mobile wallets function – known as Near Field Technology – constitutes anti-competitive behaviour.

Again, this is an interim decision. The full ruling will occur in October. Hard to say whether this is in any way a good indicator.



One thought on “Australia denies banks approval to jointly negotiate with Apple on ApplePay fees”

  1. I’m ditching both commonwealth and westpac over this, anz bank is gaining All The Customers.. our banks “suffer” the luxury of hardly competing with each other in any way so switching does nothing really, same interest rates same benefits they’ve had a virtual / emulate a monopoly so swapping is nothing at all.

    I’m giving them another two weeks to stop whining as I CBF switching right now but I’m not waiting til … 2019 for Apple Pay!

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