Banks’ Apple action held up

A MOVE by three of the big four banks to secure tap-andgo payment technology for iPhone users has been thwarted, but only temporarily.

The Australian Competition and Consumer Commission has issued an interim decision not to allow Westpac, National Australia Bank, Commonwealth Bank and a fourth player, Bendigo Bank, to effectively form a legal cartel to fight Apple and force the global giant to allow access to its exclusive near-field communication technology.

Currently only Android users can take advantage of phone payment systems offered directly by their banks, with the usual transaction fees attached.

The banks believe they will be strongarmed by Apple in a like-it-or-leave-it deal that will prevent them collecting the transaction fees.

ANZ was originally part of the group but broke ranks after its executive in charge of cards, Marj Demmer, jumped ship and joined Apple Pay, brokering a sweetheart deal that remains confidential.

The big bank alliance was hoping the ACCC would grant permission for it to negotiate as a bloc and boycott Apple for the duration of negotiations.

But ACCC chairman Rod Sims said consideration of the case, which could involve po- tentially anti-competitive behaviour on both sides, needed more time and a final decision would be handed down in October.

“This is a hellishly complex situation and a decision can’t be made in 28 days,” he said.

“We need more time to determine what the competitive detriment could be, weigh up the benefits and the costs and determine what’s in the best interests for consumers here.”

Apple’s iPhones occupy about 45 per cent of the Australian mobile phone market. In its submission to the ACCC, Apple was scathing about the banks’ motives.

“Unfortunately, and based on their limited understanding of the offering, the applicants perceive Apple Pay as a competitive threat,” the submission said.

“These banks want to maintain complete control over their customers.

“The present application is only the latest tactic employed by these competing banks to blunt Apple’s entry into the Australian market.”

Westpac, NAB, CBA and Bendigo issued a joint statement yesterday saying they would continue to consult with the ACCC.

“This application seeks to ensure that Australian customers are able to choose between different mobile wallets to make payments easily,” the statement said.