Apple will be forced to open up its contactless payment system to rivals under a UK crackdown.
The Competition and Markets Authority (CMA) is proposing to force Apple to make it easier to allow alternative contactless systems. It also plans to require Apple to cut fees.
While the iPhone maker does allow rivals to set up their own systems, none has launched in the UK, which the CMA blamed on high fees and technical restrictions.
The plans are likely to lead to a clash with Apple, which strongly guards its iPhone technology and could threaten legal action.
Apple Pay has become one of the most popular ways to make payments, but banks have grumbled about the fees the company charges.
In the EU, Apple has been forced to remove fees and allow access to the iPhone contactless chip under what are seen as less restrictive terms. A series of alternative mobile wallets from companies such as PayPal have launched there.
The CMA said it would not block Apple from charging fees but that it wanted them to be lower, claiming the status quo was blocking innovation.
The watchdog said its intervention would help fintech start-ups grow.
The Competition and Markets Authority (CMA) is proposing to force Apple to make it easier to allow alternative contactless systems. It also plans to require Apple to cut fees.
While the iPhone maker does allow rivals to set up their own systems, none has launched in the UK, which the CMA blamed on high fees and technical restrictions.
The plans are likely to lead to a clash with Apple, which strongly guards its iPhone technology and could threaten legal action.
Apple Pay has become one of the most popular ways to make payments, but banks have grumbled about the fees the company charges.
In the EU, Apple has been forced to remove fees and allow access to the iPhone contactless chip under what are seen as less restrictive terms. A series of alternative mobile wallets from companies such as PayPal have launched there.
The CMA said it would not block Apple from charging fees but that it wanted them to be lower, claiming the status quo was blocking innovation.
The watchdog said its intervention would help fintech start-ups grow.