#regulation

The UK's competition regulator wants Apple to open up the iPhone's contactless payment technology to rival wallet apps on cheaper and more flexible terms.

On October 20, the Competition and Markets Authority (CMA) published a consultation on a proposed conduct requirement under the Digital Markets, Competition and Consumers Act 2024. The rule would follow Apple's Strategic Market Status designation in the UK and is aimed at making it easier for fintechs and other challengers to compete with Apple Wallet.

Two changes sit at the centre of the plan. First, Apple would have to support both of the main international standards for contactless payments: secure element (SE) access and host card emulation (HCE).

The EU General Court in Luxembourg has ruled against Apple in its challenge to how the App Store is treated under the Digital Markets Act. Apple had asked the court to remove the store from the law's scope.

Apple's central argument was that it does not operate one App Store but five separate ones, covering iPhone, iPad, Mac, Apple TV and Apple Watch. The court disagreed, finding that each version connects developers with users and distributes software, so the App Store remains a single regulated service.

A separate part of Apple's case concerned iMessage. The court called that objection inadmissible, because iMessage has not been designated as an important gateway and is therefore not currently regulated as a DMA gatekeeper service.