ACCC denies banks negotiating power with Apple on Apple Pay

The Australian Competition and Consumer Commission rejected an application by Westpac, Commonwealth Bank, National Australia Bank, Bendigo and Adelaide Bank to negotiate with Apple to utilize use of its payment system. The boycott of Apple Pay in Australia will deny access to touch and go payments on iPhones until each bank reaches an agreement with Apple individually. If the ACCC changes their mind a group deal may be struck.

Banks are urgently seeking a solution that would allow them to bargain with Apple over the use of Apple Pay. The banks want access to near-field communication (NFC) controller with iPhones. “If the draft determination of the Australian competition regulator stands, effectively there will be no competition against Apple for mobile payments on the iPhone,” said Lance Blockley, payment specialist and bank spokesperson.

“Many organizations supported our application with their own submissions, across major retailers, Fintech companies and card schemes, and we encourage them to respond to the draft determination with further submissions during the consultation period.”

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