Australia: Banks denied request to negotiate over Apple Pay

An Australian antitrust regulator has denied a request from three of the country’s biggest banks to collectively negotiate a deal with Apple over the use of third-party digital wallet software on its iPhones.

Last month, Commonwealth Bank, National Australia Bank, and Westpac lodged a joint application with the Australian Competition & Consumer Commission to negotiate with Apple over gaining access to its NFC-based mobile payment technology, having so far resisted signing deals to use Apple Pay.

Apple strongly criticized the attempt to negotiate a deal over access to its payment hardware, claiming it would compromise security and dent innovation, and the company asked the ACCC to take the full six-month statutory period to assess the application more thoroughly.

Apple will be encouraged to learn that on Friday the ACCC decided not to grant the banks’ request during this early stage of its assessment process. ACCC chairman Rod Sims said in a statement that the commission requires more time to consult and consider the views of all the parties involved and other interested parties.

The entire ACCC authorization process usually takes up to six months, including the release of a draft decision for consultation before making a final decision. We expect to release a draft decision in October 2016. The ACCC’s decision not to grant interim authorization at this time is not indicative of whether or not a draft or final authorization will be granted.

Last week, Apple lambasted the banks for asking the ACCC for an interim authorization, which would have allowed them to collectively boycott Apple Pay while the negotiations took place.

Full Content: Apple Insider

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