In the latest submission to the Australian Competition and Consumer Commission, Apple Inc. (NASDAQ:AAPL) has argued that the banking consortium’s only reason for demanding access to the near-field communication technology of the iPhone is to avoid Apple Pay fees and is not about fostering healthy competition. The banking consortium consists of Adelaide Bank, Bendigo, National Australia Bank, Westpac Banking Corporation and Commonwealth Bank of Australia.

Access to NFC controller

In their petition to the ACCC, the four banks have been asking for regulatory approval which would allow them to get into collective negotiations on conditions relating to efficiency, best practice standards and competition with third-party mobile providers such as Apple Pay. The consortium wants access to the iPhone’s near-field communication technology controller arguing that this would allow the banks to provide their own digital wallets to iPhone owners without having to use Apple Pay. Also, the consortium is seeking for the removal of restrictions that bar banks from passing on fees that Apple has imposed.

The consortium argues that if Apple allows direct access to its NFC technology, members of the public will benefit since it would enhance innovation, foster competition in the Australian market and consequently lead to increased adoption of mobile payment platforms. Apple, however, disputes all the promises the banks are making. Additionally, forcing a company to give up an asset would provide dangerous precedent for other companies to petition the government for the same, leading inevitably to a lack of innovation on fear that governments would simply provide proprietary assets to anyone who requests them.

“The only benefit that would accrue to the banks, in that case, is a purely private benefit where they would be allowed to continue to free-ride on the significant investments made by Apple in its devices, iOS platform, and Apple Store infrastructure,” Apple’s submission read.

No special treatment

In its arguments, Apple has also added that the banks are engaged in a futile effort because even if the ACCC allows the banks to undertake collective negotiations with Apple, the Cupertino, California-based tech giant will not allow its customers to be charged for the service or even allow direct access to its NFC terminal. This is because more than 3500 financial institutions around the world had accepted the conditions and Apple would not change them to suit one jurisdiction.

In Friday’s trading session, shares of Apple Inc rose by 0.40 percent to close the day at $129.05.