UK Regulator Proposes Forcing Apple to Open iPhone Contactless Tech

The Competition and Markets Authority proposed forcing Apple Inc. to open the iPhone's near field communication (NFC) contactless payment technology to rival digital wallet providers in the United Kingdom. The antitrust watchdog aims to remove technical barriers and lower access fees, specifically proposing that developers gain access to host card emulation in addition to Apple's existing secure element technology.

Chief Executive Sarah Cardell stated that current high fees and strict terms hinder innovation in the UK fintech sector. The regulator, which previously designated Apple as dominant in the mobile ecosystem sector, is consulting on these proposals until November 17. This action follows similar regulatory moves in the European Union that enabled firms like PayPal and Klarna to launch alternative mobile wallets.

Apple Inc. has opposed the measure, arguing that the proposals could lead to lower privacy and security protections for users. The proposal has received support from the Financial Conduct Authority and digital bank Revolut, both of which view the move as a way to help UK fintech firms compete with large technology companies.