Apple surprised by 'quick' German law on digital payments

German parliamentary committee will force operators of electronic money infrastructure to offer access to rivals

Apple has said that opening its mobile payments system to rivals could hurt data protection and the security of financial information.

The statement comes after a Germany parliamentary committee unexpectedly voted to force the tech giant to open up Apple Pay to rival providers in the country.

The vote took place late on Wednesday and the outcome will be in the form of an amendment to an anti-money laundering law that was adopted by the full parliament on Thursday. It is expected to come into effect at the start of 2020.

This legislation will force operators of electronic money infrastructure to offer access to rivals. Although it didn't name Apple specifically, the US company has hit back.

"We are surprised at how suddenly this legislation was introduced," Apple said. "We fear that the draft law could be harmful to user-friendliness, data protection and the security of financial information."

Advertisement - Article continues below
Advertisement - Article continues below

Apple Pay is one of the fastest-growing areas of the tech giants business. It lets people pay with their iPhones, offering a digital alternative to traditional banking.

The subject of digital payments, along with proposed cryptocurrencies, such as Facebook's Libra, has resulted in a demand for tighter regulations on US tech companies.

However, the office for German chancellor Angela Merkel pushed the committee to actually withdraw the amendment, according to Reuters, which cited a person close to the country's government.

"It's quite unusual for the Chancellor's office to try and stop something in the last minute," said Jens Zimmermann, a senior lawmaker from the Social Democrats, junior coalition partners to Merkel's conservatives. "It would be astonishing if they let themselves be reined back by an American company," he added. "We want fair competition between payment providers."

Featured Resources

Digitally perfecting the supply chain

How new technologies are being leveraged to transform the manufacturing supply chain

Download now

Three keys to maximise application migration and modernisation success

Harness the benefits that modernised applications can offer

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

The 3 approaches of Breach and Attack Simulation technologies

A guide to the nuances of BAS, helping you stay one step ahead of cyber criminals

Download now

Most Popular

operating systems

17 Windows 10 problems - and how to fix them

13 Jan 2020
Microsoft Windows

What to do if you're still running Windows 7

14 Jan 2020
web browser

What is HTTP error 503 and how do you fix it?

7 Jan 2020
mergers and acquisitions

Xerox to nominate directors to HP's board – reports

22 Jan 2020