Zinger Key Points
- Australia's proposed regulation aims to treat digital wallet apps like credit cards.
- Apple argues that this regulation could increase regulatory burden without public benefit and hinder innovation.
- The move comes as part of Australia's broader initiative to implement stricter laws for tech giants like Apple and Google.
- Benzinga shares with you top insiders news
Apple Inc. AAPL has expressed dissent over a proposed regulation in Australia that intends to administer its digital wallet service, Apple Pay, in the same manner as credit cards. The tech behemoth asserts that such a step could potentially impede innovation.
What Happened: As reported by AppleInsider on Tuesday, new regulations are being formulated in Australia that would equate digital wallet apps with credit cards. Apple, however, warns that this could result in regulatory mistakes and hinder the development of Australia’s payment system.
In a statement, Apple conveyed, “The proposed expansion will increase regulatory burden without a net public benefit, give rise to regulatory error, and stifle the dynamic innovation that has characterized Australia’s payment system over recent years.”
See Also: Everything You Need to Know About Apple Stock
Jim Chalmers, Australia’s Treasurer, contends that the intention behind this proposed regulation is to ensure transparency surrounding charges in light of the growing digitalization of payments.
Apple Pay, which functions with a third-party-issued debit, credit, or prepaid card, does not gather any transaction information, according to Apple.
The popularity of digital wallets is on the rise in Australia, having reportedly surged from 10% to 35% of all transactions. Hence, the implications of these regulations could be substantial.
Why It Matters: This move comes amidst Australia’s investigation into implementing stricter laws for tech companies like Apple and Alphabet Inc’s Google GOOG GOOGL))).
As per a 2021 report, the country is exploring ways to level the playing field for smaller tech enterprises to compete against the dominant tech giants.
The proposed regulation for digital wallet services is seen as part of this broader initiative. However, the objection raised by Apple underscores the challenges such regulatory moves might face.
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