Industry Minister Proposes Competition Bureau Review Digital Wallets
Industry Minister François-Philippe Champagne emphasizes the importance of competition in the digital wallet market, dominated by big tech companies, and calls for the Competition Bureau to address this issue.
In a recent correspondence to the bureau, Mr. Champagne highlights actions taken by other countries to prevent a single entity from controlling the market.
Last week, the European Union approved a deal where Apple committed to allowing competitors access to its “tap to pay” iPhone payment system, resolving an anti-trust case.
Mobile wallets use near-field communication (NFC), a chip that wirelessly communicates with merchant terminals.
The EU identified Apple Pay as the primary NFC-based mobile wallet and accused the company of blocking others’ access.
In the US, the Justice Department filed a lawsuit in March alleging that Apple restricts access to contactless payments for third-party digital wallets.
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British authorities announced on July 15 that they will investigate digital wallets for potential competition and consumer concerns.
They identified Apple Pay, Google Pay, and PayPal as the most commonly used systems in the UK, noting the growing importance of digital wallets for interactions between big tech companies and consumers in the UK.
In his letter, Mr. Champagne respects the independence of the Competition Bureau while urging the commissioner to address the issue.
Mr. Champagne expressed confidence in the bureau’s ability to take appropriate action to preserve a competitive economy if major industry players engage in anti-competitive behavior.
