TelecomTV TelecomTV
  • News
  • Videos
  • Channels
  • Events
  • Directory
  • Smart Studio
  • Surveys
  • Debates
  • Perspectives
  • DSP Leaders World Forum
  • DSP Summits
  • Great Telco Debate
    • |
    • Follow
    • |
    • Subscribe
  • |
  • More
  • Webcasts
  • Surveys
  • Debates
  • Perspectives
  • Great Telco Debate
  • |
  • Follow TelecomTV
  • |
    • Subscribe
    • |
  • About
  • Privacy
  • Help
  • Contact
  • Follow TelecomTV
  • About
  • Privacy
  • Help
  • Contact
  • Sign In Register Subscribe
    • Subscribe
    • Sign In
    • Register
  • Search

Digital Platforms & Services

Digital Platforms & Services

Why Apple Pay has attracted antitrust scrutiny... and why it deserves to

Ian Scales
By Ian Scales

Dec 23, 2020

  • Apple has simply used the old ‘security’ excuse to prevent competitors from using its NFC chip on the iPhone for payment apps
  • NFC enabled payments are booming because of Covid-19, so competitive companies are feeling disadvantaged
  • This situation bears an uncanny resemblance to the old and well-worn argument over net neutrality - except this time it’s a handset platform that’s non-neutral 

The mobile payments business is huge and growing. That’s partly because countries are opening up their banking environments to new players who are supposed to be ‘challengers’ and able to inject more innovation, boost competition and lower money costs for consumers. As a result there’s a huge choice of payment methods and digital service providers (DSPs) are piling in to snatch a share  - many of them are telcos who see payment services as their natural territory. 

Trouble is, as always, ‘clever clogs’ big tech thinks it should be in there too... and, by dint of their control of mobile platforms, particularly Google’s Android and Apple’s IoS, at this stage of the game they’re doing rather nicely. According to ‘Finance Magnates.com’ Apple has signed up 35 per cent of merchants worldwide to Apple Pay and Google Pay is not too far behind with 25 per cent. 

Just to push things along, Covid-19 has proved to be one of the ‘alternative’ (ie anything but cash) payments systems’ best friends as people naturally tried to avoid physical contact through the pandemic. A habit which, the research says, will continue once Covid is in the rear-view mirror. 

However, to win and defend its position as the dominatrix of its own IoS platform  Apple decided to play hardball and as a result is in danger of  attracting adverse regulatory attention as the US enters one of its periodic monopoly busting frenzies. The European Union has already launched a probe into the  Apple Pay platform, announced in June this year,  Australia has too and this month The Netherlands joined the hue and cry by announcing that its  Authority for Consumers and Markets (ACM) was looking into whether companies such as Apple are in breach of competition rules if they limit payment apps’ access to the smartphone’s critical NFC chip, thereby restricting a user’s choice of  payment method. 

As that’s exactly what Apple does regarding both NFC-enabled iPhone and Apple Watch. The result is that only those devices can make in-store NFC payments via Apple Pay. Game, set and match. 

Obviously Apple’s Apple Pay policy is going to be in need of a major rewrite next year.

Related Topics
  • Analysis & Opinion,
  • Apple,
  • Business Models,
  • Coronavirus,
  • Device Software & Apps,
  • Digital Platforms & Services,
  • Global,
  • Google,
  • News,
  • Policy & Regulation,
  • Smartphones,
  • Telco & CSP,
  • Telecoms Vendors & OEMs

More Like This

Digital Platforms & Services

What’s up with… Ericsson & Vodafone, satellite broadband, Huawei

Apr 16, 2021

Digital Platforms & Services

Nokia’s Nuage Networks to power China Mobile Cloud’s massive public cloud expansion

Apr 15, 2021

Digital Platforms & Services

What’s up with… Bharti Airtel, SK Telecom, Open Grid Alliance, Cato Networks

Apr 15, 2021

Digital Platforms & Services

In-vehicle advertising is a dead end. Cars to get payment power instead

Apr 15, 2021

Digital Platforms & Services

VMware is going solo, to be spun off from Dell

Apr 15, 2021

Email Newsletters

Stay up to date with the latest industry developments: sign up to receive TelecomTV's top news and videos plus exclusive subscriber-only content direct to your inbox – including our daily news briefing and weekly wrap.

Subscribe

Top Picks

Highlights of our content from across TelecomTV today

DSP Leaders World Forum 2021 Delegate Report

0:50

DSP Leaders Open Telco Summit

23:25

Extra Shot: Next Steps for DSPs

11:17

How cloud dynamics are reshaping the telecoms sector

  • TelecomTV
  • Decisive Media

TelecomTV is produced by the team at Decisive Media

Menu
  • News
  • Videos
  • Channels
  • Directory
  • Smart Studio
 
  • Surveys
  • Debates
  • Perspectives
  • Events
  • About Us
Our Brands
  • TelecomTV Tracker
  • TelecomTV Perspectives
  • DSP Summits
  • DSP Leaders World Forum
  • The Great Telco Debate
Get In Touch
info@telecomtv.com
+44 (0) 207 448 1070

Request a Media Pack

Follow
  • © Decisive Media Limited 2021. All rights reserved. All brands and products are the trademarks of their respective holder(s).
  • Privacy
  • Terms
  • Legal Notices