ACCC denies big bank cartel on Apple Pay

Tuesday, 29 Nov 2016 07:02:07 | Michael Janda

Three of the big four banks wanted permission to collectively bargain with Apple. (ABC News: Gregory Nelson)

The competition watchdog has denied permission for three of the big four banks to collectively bargain with Apple over use of its electronic payment system.

The Australian Competition and Consumer Commission has rejected an application by the Commonwealth Bank, Westpac, National Australia Bank and Bendigo and Adelaide Bank to collectively negotiate with Apple over use of its payment system, and potentially boycott it.

The banks were seeking an exemption from anti-cartel laws that would allow them to bargain as a group over use of Apple Pay, access to the "near-field communication" (NFC) controller within iPhones and the ability to negotiate around passing on the fees Apple charges for using the payment system to their customers.

The banks argued that lack of access to the NFC could stifle the development of "digital wallets" that might compete against Apple Pay, but the ACCC said NFC access is not necessary for digital wallets.

The ACCC's chairman Rod Sims said the benefits of allowing the banks to negotiate as a group were uncertain.

"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," he noted in a statement.

ANZ and American Express have reached separate agreements with Apple to use its payment system in Australia.

More to come.

AustraliaPlus

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ACCC denies big bank cartel on Apple Pay

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