UK Asks Apple to Open Contactless Payment Technology to Competitors

The UK Competition and Markets Authority has opened a consultation on a proposed conduct requirement under the Digital Markets, Competition and Consumers Act 2024, requiring Apple to grant third parties access to Near Field Communication (NFC) technology on iPhone devices.

The requirement aims to enable payment and digital service providers to access NFC via Secure Element technology and Host Card Emulation (HCE) technology on fair, reasonable, and non-discriminatory terms.

The authority stated that it does not set fees directly, but expects them to decrease significantly as competition increases. The consultation runs until November 17, 2026.

The proposal comes as part of the tools under the Digital Markets, Competition and Consumers Act 2024, which grants the authority the power to impose conduct requirements on companies with strategic market status in digital markets.

What do these terms mean?

NFC: A short-range wireless communication technology that allows a phone to make payments or exchange data when brought close to another device.

Secure Element: A separate chip inside the phone that stores payment and card data in encrypted form and protects it from unauthorized access.

Host Card Emulation (HCE): A technology that makes the phone act as a virtual payment card without requiring a separate chip.

Conduct Requirement: A regulatory obligation defining how a dominant company interacts with competitors and users, instead of imposing a fine or breaking up the company.