The UK’s competition watchdog is setting out new proposals aimed at unlocking Apple’s contactless technology for rival apps and fintech providers.
The intervention targets Apple’s strict monopoly over the iPhone’s near-field communication (NFC) hardware. Currently, Apple restricts third-party developers from fully accessing the built-in NFC chip, meaning that mobile transactions on iOS are heavily funnelled through Apple Wallet and Apple Pay.
With over 60% of UK adults using digital wallets and contactless payments accounting for nearly 40% of all UK financial transactions, regulators argue that these self-serving restrictions stifle competition and block innovative third-party services.
To dismantle this chokehold, the Competition and Markets Authority (CMA) has proposed new conduct requirements under the Digital Markets, Competition and Consumers Act.
Under the plans, Apple would be legally required to grant rival wallet providers and developers fair, interoperable access to its NFC hardware through standard international technologies, including both secure element (SE) and host-based card emulation (HCE) systems.
Furthermore, the regulator proposes that access fees charged by Apple must be substantially lowered and subject to fair commercial principles, preventing the tech giant from pricing competitors out of the market.
Consumer groups have welcomed the move. Rocio Concha, Which? Director of Policy and Advocacy, said:
“It’s positive that the CMA is taking action against Apple’s ‘tap-to-pay’ monopoly on iPhone, which is being propped up by anti-competitive chip restrictions.
“Which? research shows digital wallets are used by a majority of UK consumers. Many people rely on their phone every day for making payments, but they’re missing out on innovative services due to self-serving restrictions set by Apple.”
While consumer advocates praise the initiative, Which? has urged the CMA to ensure Apple cannot exploit loopholes, such as high developer fees, to maintain an unfair advantage compared to regulatory frameworks established in the European Union.
The CMA’s consultation on the proposed conduct requirements remains open until November 17, 2026, before a final regulatory decision is issued.
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