Australian Regulators Prevent Banks From Collectively Bargaining With Apple Over Apple Pay

The Australian Competition and Consumer Commission (ACCC) today issued a determination that again denies authorization for the major banks in the country to work together to negotiate with Apple to gain access to the NFC chip within iOS devices.

Commonwealth Bank of Australia, Westpac Banking Corporation, National Australia Bank, and Bendigo and Adelaide bank had asked for permission to collectively bargain with Apple and boycott Apple Pay. According to the ACCC, the request was denied because the potential benefits do not outweigh the detriments, and there were concerns that the collective bargaining could reduce or distort competition in a number of markets.

The Australian banks have been aiming to get access to the NFC chip in the iPhone, which would allow their own payments services to work on iOS devices alongside Apple Pay. Apple does not allow third-party access to the NFC chip because of security concerns, leading Apple to urge the ACCC to deny the request.

The banks argued that access to the NFC chip in the iPhone would allow them to offer competing wallets, which would lead to increased competition and consumer choice in digital wallets and increased innovation and investment in digital wallets.

"This is currently a finely balanced decision. The ACCC is not currently satisfied that the likely benefits from the proposed conduct outweigh the likely detriments," ACCC Chairman Rod Sims said.

With the request for collective negotiations shut down, Australian banks that are holding out against Apple Pay will each need to negotiate individually with Apple. Following the ACCC's statement, the banks released a joint statement calling the decision disappointing.

Thus far, the banks involved in the dispute have resisted implementing Apple Pay, and it's not clear if today's decision will result in a meaningful change. While Apple Pay has been available in Australia for quite some time through partnerships with American Express and ANZ, the many Australians who bank with the three major banks involved in the dispute do not have access to Apple Pay.

Related Roundup: Apple Pay

Top Rated Comments

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Kaibelf

37 months ago

Every time I hear the words "increased competition and consumer choice" from a bank, cable company, media company, telecom, or insurer, I know they are flat out lying.

Rating: 31 Votes

blablabla23

37 months ago

Now that Apple has decided they're good and ready, they've blocked NFC access to anyone who doesn't jump on board with *THEIR* scheme and pay a % of the transactions.

Commonwealth (and others) have invested hundreds of millions into this technology - now completely moot just because Apple says so.

you cannot possibly have said that with a straight face. The technology implemented by Commbank is so cumbersome and troublesome i can't believe people actually pay for to use it (yes, our bank charges us for the "convenience" and kicks up a fuss when someone else develops a more efficient way to do things).

it isn't moot because apple "says so". The banks simply overpaid for an underdeveloped technology- the amount is immaterial and does not grant them exclusive rights to monopolising the Aussie market.

you want convenience (literally) at your fingertips? Expect to pay for it. That's how the world works.

Rating: 17 Votes

MrX8503

37 months ago

....

Commonwealth (and others) have invested hundreds of millions into this technology - now completely moot just because Apple says so.

I get that it's Apple's hardware, but their attitude is that the hardware can only be used by Apple's payment service and no one else's. What next - you can't make phone calls unless it's through Apple's own VoIP service?

It's Orwellian and it's worse for Apple customers in the long run.

who cares.... Commonwealth and other banks like them made the wrong bet.

I think our banks just want competition, and tha benefits us the consumer.

They're lying to you....

Here are some rules to live by:
Never trust a bank, credit card company, ISP, or insurance company.

Rating: 10 Votes

-BigMac-

37 months ago

About damn time! Im with one of those 3 banks.. what a disappointment this stand off has been. GIMMI APPLEPAY:D:apple:

Rating: 9 Votes

HouseOfMonkeys

37 months ago

Exactly, that is what I did to start with. Have now moved all banking to ANZ and closed all my Westpac accounts.

I have had an ING account for years. All set up in ApplePay now. Love it. Out for a walk with just my phone. Go get a coffee and ApplePay away! Sorry Commbank, will not wait for you any more.

Rating: 8 Votes

Blahfish

37 months ago

About damn time! Im with one of those 3 banks.. what a disappointment this stand off has been. GIMMI APPLEPAY:D:apple:

You should just setup an ANZ account. I still bank with the Commonwealth, but transfer my budgeted spending money across to my ANZ account.

Rating: 8 Votes

Laserducky

37 months ago

So what. Apple Pay is a convenient non-necessity. I have it, my bank uses it, I have never used it. I really don't want to whip out a plus sized phone at the checkout counter.

True but an Apple Watch makes Apple Pay super easy to use : just a flick of the wrist.

Rating: 7 Votes

Poofy1971

37 months ago

You should just setup an ANZ account. I still bank with the Commonwealth, but transfer my budgeted spending money across to my ANZ account.

Exactly, that is what I did to start with. Have now moved all banking to ANZ and closed all my Westpac accounts.

Rating: 6 Votes

Robert.Walter

37 months ago

As an Australian, an Apple and Commonwealth Bank customer - I'm actually disappointed at this. CBA introduced a mobile NFC payment solution back in 2011 because they were tired of waiting around for tech companies.

Now that Apple has decided they're good and ready, they've blocked NFC access to anyone who doesn't jump on board with *THEIR* scheme and pay a % of the transactions.

Commonwealth (and others) have invested hundreds of millions into this technology - now completely moot just because Apple says so.

I get that it's Apple's hardware, but their attitude is that the hardware can only be used by Apple's payment service and no one else's. What next - you can't make phone calls unless it's through Apple's own VoIP service?

It's Orwellian and it's worse for Apple customers in the long run.

Disruption pays no tribute to the standing investments made in wrong decisions or dead end technologies.
[doublepost=1490927817][/doublepost]As the customers continue to move to any bank that respects them by offering the option of Apple Pay, eventually the big boys will cave in but likely never regain customers previously lost without incentives; greedy bankers are penny wise and pound foolish.

The waiting game is Apple's to play.

Rating: 5 Votes

paul4339

37 months ago

... but our banks have spent billions upon billions of dollars rolling out contractless payments nation-wide, there needs to be some negotiation.

People can still use the bank's solution for contactless payment on credit cards and debit cards... this is still by far the most popular form of contactless payment.
The banks can still negotiate to adopt ApplePay (or similar technologies) - individually, not collectively.

.

Rating: 4 Votes

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