UK Antitrust Regulator Wants Apple to Open Up iPhone NFC Access
The UK's Competition and Markets Authority has issued a new proposal targeting Apple's near-monopoly on contactless smartphone payments.
Radwan AbdulhadiEditor and technology writer
CMA Targets Apple's NFC Payment System
The United Kingdom is taking aim at Apple's near-monopoly on contactless Near-Field Communication (NFC) smartphone payments through a new proposal from the Competition and Markets Authority (CMA). Noting that Apple's fees and rules are blocking UK fintechs and other businesses from innovating and growing, the regulator stated that it wants substantially lower charges and for Apple to open up its closed standards. According to a <a href="https://www.gov.uk/government/news/cma-outlines-proposals-to-unlock-contactless-technology-on-apple-iphone">new proposal</a> outlined by the CMA, the UK functions as a leading fintech hub supporting more than 360,000 jobs.
The regulator added that 39 percent of all UK payments are now conducted using contactless technology, with Apple Wallet standing out as the most popular choice. However, the regulatory body emphasized that Apple's fees and access rules for NFC technology risk blocking the ability of financial technologies to innovate and grow due to onerous terms. Furthermore, unlike in the European Union, not a single firm has launched a wallet-type product to compete with Apple in the UK market.
Comparisons to the European Union Agreement
The CMA appears to want the same deal secured by Europe. In 2024, <a href="https://www.engadget.com/apple-will-allow-developers-access-to-its-nfc-technology-avoiding-an-eu-fine-123026127.html">committed</a> to providing developers with NFC technology used for tap-and-go payments, while also providing access to iOS features such as Face ID authentication and double-click to pay. That particular agreement saved the technology giant from a massive antitrust fine of up to 10 percent of its worldwide annual turnover.
Apple subsequently offered third-party access to such functions in other regions <a href="https://www.engadget.com/mobile/smartphones/apple-is-finally-opening-up-nfc-to-third-party-developers-in-ios-181-164028928.html">starting with iOS 18.1</a>. While UK developers do have access to certain features, they remain constrained within Apple's ecosystem and are forced to pay fees unlike their counterparts in Europe.
Proposed Changes and Commercial Viability
To address these disparities, the CMA is proposing that Apple open Wallet access to the main contactless standards used internationally so that UK firms can roll out payment services already offered in the EU. The regulator noted that its collected evidence shows neither technology raises inherent security concerns.
Additionally, the regulatory authority wants to make access to Apple's services commercially viable. Rather than directly setting prices itself, the CMA prefers to propose principles for how such rates should be determined, with the clear expectation that charges would be substantially lower than Apple's current fee structure.
Apple's Response and Consultation Timeline
The public consultation period for the proposal will close on November 17, 2026, after which a final decision will be made following the assessment of all responses. Apple has already strongly objected to the regulatory pressure, according to a statement provided to Engadget.
Apple stated that it has made it possible for developers in the UK and around the world to securely offer contactless transactions directly within their applications through the NFC and Secure Element Platform for in-store payments, transit passes, car keys, and event tickets. The company emphasized that this solution enables developers and banks to create innovative products while ensuring users' sensitive data remains protected by the highest security standards.
The company concluded its statement by noting that it does not believe the CMA should require Apple to adopt an approach with lower privacy and security protections, adding that it will continue to engage constructively to reach an outcome that serves the best interests of users.
Sources
- EngadgetUK antitrust regulator wants Apple to open up iPhone NFC access
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