“Apple has launched a blistering attack on three of Australia’s big banks, saying their request to collectively negotiate over digital wallet access to the iPhone will compromise the handset’s security, reduce innovation and blunt Apple’s entry into the payments market in Australia,” James Eyers reports for Austrialian Financial Review. “”
“In a sign of growing acrimony between the world’s largest company and the Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corp, Apple told the Australian Competition and Consumer Commission that ‘allowing the banks to form a cartel to collectively dictate terms to new business models and services would set a troubling precedent and delay the introduction of new, potentially disruptive technologies,'” Eyers reports. “In a pithy, three-page submission to the ACCC, Apple says providing access to the phone’s transmitter to allow bank applications to facilitate contactless payments would compromise the security of Apple’s hardware. ‘Apple upholds very high security standards for our customers when they use Apple devices to make payments,’ it said. ‘Providing simple access to the NFC antenna by banking applications would fundamentally diminish the high level of security Apple aims to have on our devices.'”
Eyers reports, “‘Unfortunately, and based on their limited understanding of the offering, the [banks] perceive Apple Pay as a competitive threat. These banks want to maintain complete control over their customers. The present application is only the latest tactic employed by these competing banks to blunt Apple’s entry into the Australian market,’ said Apple in a document signed by Marg Demmer, a former cards executive at ANZ Banking Group.”
Read more in the full article here.
MacDailyNews Take: As we wrote last month of the Australian banks’ demand for NFC access:
Apple could simply argue “No” on the simple and obvious ground of protecting iOS user’s security.
Australian banks accuse Apple of anti-competitive behavior, want access to iPhone’s NFC chip to take on Apple Pay – July 28, 2016
ANZ welcomes Apple Pay in Australia with a funny new TV ad – May 5, 2016
Apple expands Apple Pay in Australia with ANZ bank deal – April 28, 2016