Apple says Australia’s federal government’s plan to regulate its payment services “is a dangerous overreach and is being driven by the self-interested misrepresentations by major banks about how the iPhones work,” reports the Financial Review.
On June 7, the Australian Government released its Strategic Plan for Australia’s Payments System, outlining the Government’s policy objectives and priorities for reform. Pushing back against the proposal being considered by the government to extend Reserve Bank powers to digital payment platforms, Apple said the move could backfire by weakening the privacy and security of iPhones.
The rules will affect Apple Wallet, Apple Pay, and similar services by companies other than Apple. Current rules by the Australian government don’t allow the government to impose rules on tech firms regarding smartphone access and price regulation.
In its argument against the new plan, Apple says its Wallet is effectively a “digital reproduction of a physical wallet, and no more a payment system or participant than an actual physical wallet would be,” notes the Financial Review. What’s more, the company claims that the design of Apple Wallet is meant to be pro-competitive, since it allows smaller banks and fintech companies more access, as well as more choice in what card they use. Finally, Apple argues that Apple Pay is a limited player in the mobile payments system, so doesn’t create a financial risk to banks.
Article provided with permission from AppleWorld.Today