Apple Battles Australian Banks over Access to Apple Pay Platform

By August 31, 2016Bitcoin Business

Apple Inc. is battling with five of Australia’s banks that are seeking to negotiate collectively with Apple for access to its mobile payment technology. Over the last several months, the banks have complained Apple is not permitting access to mobile payment technology. Commonwealth Bank of Austrailia, National Australia Bank, Westpac Banking Corporation, Adelaide Bank and Bendigo have applied to the Australian Competition and Consumer Commission (ACCC) seeking approval for collective bargaining in negotiating with Apple. Apple Responds To Banks In a submission to the ACCC, Apple gave reasons why the ACCC shouldn’t enable the banks to collude. It said a cartel would give the biggest banks more of the financial market. Apple said it does not restrict its partners from developing their own iOS apps. It said every major Australian bank has an iOS banking app and that two provide mobile payment wallets on iOS and other platforms. Negotiations Attempted Apple said it has tried but failed to negotiate terms with each of the applicant banks except one, which has not been willing to sign a confidentiality agreement. Apple said it cannot offer Apple Pay to the banks’ customers without the banks agreeing to terms with Apple. Because the banks have resisted engaging with Apple for the past two years, collectively negotiating will further entrench the banks’ position by ensuring that all of them can only advance in lockstep with the slowest, least willing member, Apple argued. The banks would know they can hold out without the threat that one of their competitors will introduce Apple Pay for their customers. This competitive dynamic, which the banks want to avoid, would benefit Australian consumers, Apple claimed. Apple Fights Banks’ Request If the Commission permits the banks to negotiate with Apple as a collective group, the banks will not agree to […]

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