UK Regulator Proposes Wider iPhone Contactless Access

The Competition and Markets Authority on October 20 proposed giving rival developers another way to access the iPhone’s contactless technology in the United Kingdom, a move intended to reduce barriers to competing payment and digital services. The proposal would also establish principles for access charges that the regulator expects to be substantially below Apple’s current fees, while still compensating the company. The plan would add host-based card emulation as an alternative to the secure element route currently available to eligible developers. That existing access requires a commercial agreement covering applicable fees. The CMA has proposed principles for charges, not a fixed price, and has not made a final decision on whether to require Apple to provide the additional access. The regulator says broader access could help developers offer alternatives for contactless payments as well as services such as digital identification, travel passes and keys. It argues that technical access alone is not enough if the commercial terms make competing services unviable. Apple has objected that the approach sought by the CMA would provide lower privacy and security protections. The...