Crikey reported last month on three of Australia’s biggest banks asking the ACCC if they can team up to negotiate against tech giant Apple to use the payments technology embedded in iPhones. It’s not fair, they whined, that Apple won’t let them double charge their customers, and they’re too small to negotiate with Apple alone.

Apple isn’t having any of it, unsurprisingly. In a response uploaded to the ACCC’s website last week, Apple pointed out that three of the banks involved, Commonwealth, Westpac, and NAB account for 66% of credit card balances in Australia. So Apple needs them in order to get a significant footing for Apple Pay in Australia.

In an amusing statement considering Apple’s tightly held control over its ecosystem, Apple said the banks perceived Apple Pay as a threat on the banks’ ability to “maintain complete control over their customers”.

If the ACCC allows the banks to negotiate in a bloc, Apple has warned it would allow banks to charge customers to use Apple Pay, and would risk the security of its payments technology by opening it up to the banks. It would have a “lasting and irreversible impact” on mobile payments in Australia, Apple warned.

The ACCC has yet to make a decision.

Peter Fray

Get your first 12 weeks of Crikey for $12.

Without subscribers, Crikey can’t do what it does. Fortunately, our support base is growing.

Every day, Crikey aims to bring new and challenging insights into politics, business, national affairs, media and society. We lift up the rocks that other news media largely ignore. Without your support, more of those rocks – and the secrets beneath them — will remain lodged in the dirt.

Join today and get your first 12 weeks of Crikey for just $12.

 

Peter Fray
Editor-in-chief of Crikey

JOIN NOW