ACCC blocks big banks’ collective bargain with Apple

Company News

by David Chau

The Australian Competition and Consumer Commission (ACCC) has released a draft determination rejecting a bid by Commonwealth Bank, Westpac, NAB and Bendigo and Adelaide Bank to collectively bargain with tech giant, Apple.

The banks wanted to bargain with Apple on two issues. Firstly, access to the Near-Field Communication controller in its iPhones. This would enable the banks to offer their own integrated digital wallets to iPhone customers. This would also result in competition with Apple’s digital wallet without using Apple Pay.

Secondly, the banks wanted to remove restrictions Apples imposes on them which prevent them from passing on fees, charged by Apple to the banks, for use of its digital wallet.

The ACCC decided that allowing the banks to bargain collectively could reduce or distort competition in a number of markets.

Currently, ANZ is the only Australian Bank which has signed up to a deal with Apple in regards to its Apple Pay Platform.