Summary
The UK Competition and Markets Authority is consulting on proposals that would require Apple to provide access to both main contactless technology standards on iPhone. Its proposed pricing principles are expected to make access substantially cheaper, but the CMA has not set fees and has not made a final decision.
The UK Competition and Markets Authority (CMA) is consulting on proposals that would require Apple to give UK businesses access to both main contactless technology standards on iPhone. The regulator expects its proposed pricing principles to result in substantially lower access fees, but is not proposing to set the price or terms itself. The measures are proposals, not a final requirement.
Contactless technology on phones commonly uses near-field communication (NFC), which allows devices to exchange data at close range. It supports services such as mobile payments, travel passes and digital keys.
What the proposals would change
The CMA says Apple currently offers only one of the two main international standards for contactless services in the UK: secure element (SE), which stores information on the device. The other, host-based card emulation (HCE), stores data off-device. Both are established technologies used across mobile platforms, and neither was developed by Apple.
Under the proposal, Apple would have to provide access through both SE and HCE. The CMA says evidence it has seen suggests neither standard raises inherent security concerns, and argues that access to both would give businesses more choice and support a wider range of services. It could also help UK firms offer payment services already available in the EU.
The CMA says businesses have raised concerns that current access fees and other terms may not be commercially viable, and that technical differences between jurisdictions and platforms can make it harder to scale services. It also says no firm has launched a competing wallet-type product in the UK, unlike in the EU, where alternative payment apps followed Apple’s agreement to provide access for payments.
The potential uses extend beyond payment wallets. The CMA lists account-to-account payments, digital identities, age verification, travel tickets, loyalty services and digital keys for cars, hotels and workplaces as possible applications.
Consultation, not a final rule
The proposals form part of a proposed conduct requirement under the Digital Markets, Competition and Consumers Act 2024. The consultation follows the CMA’s designation of Apple as having Strategic Market Status in relation to its mobile platform.
On fees, the CMA proposes principles for determining access terms rather than a specific price. It expects charges to be substantially lower than Apple’s current fees while still fairly rewarding Apple for providing access. If adopted, the measures could make it more practical for businesses to develop competing services on iPhone; the eventual effect would depend on the final rules and how access is provided.
The consultation closes on 17 November 2026. The CMA says it will make a final decision after assessing responses.