Apple Inc phone payment network has grown to the third-largest consumer payment. On Thursday, the Commonwealth Bank accused the company of breaching the competition laws. Competition regulator told the financial review newspaper of Australia about the review of Apple payment network.
The largest lender in the country asked Apple to free up the Near Field Communication (NFC) chip from the iPhone so that users can access the apps of banks. The bank said that Apple captures 80% of the transactions through digital wallets and is trying to create a monopoly in the payment networks.
Matt Comyn, the bank’s chief executive, pleads to the regulatory authorities to elevate the scrutiny of big-tech companies. The report suggests that 45% of consumer payments are done through digital wallets developed by Apple and Google. But unlike Apple, Google lets banks and third parties access its NFC chip. Comyn mocks the company on the remarks that “Apple pay is a pro-competition”.
Apple refused to answer such accusations. Experts stated that Apple needs banks to process the transactions through its digital wallet. The company is paying undisclosed fees to the banks for the transactions. The investigation has been going on, but the results are not published yet.
Last month, Apple told the inquiry team that the app is pro-competitive and those who are filing accusations intend to make commercial gains out of it. The tech giant told the senate about the activities of other companies to gain a monopoly in the market. The company stated that its secure payment network has no issues but declined to reply further.
The representative of the competition regulator refused to give updates on the investigation. However, experts suggested that the blue-chip stock (AAPL) can witness a heavy movement. They stated that accusations might impact the price of the tech giant stock.