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Abigayle Laurenitis
Swiss banks accused of boycotting Apple Pay and Samsung Pay
Switzerland's competition watchdog has opened an investigation into several Swiss financial institutions, including Credit Suisse and UBS, over an alleged boycott of mobile payment solutions by providers such as Apple Pay and Samsung Pay.
The Competition Commission (WEKO) said on Thursday that it suspected that the banks had agreed not to make their credit cards available for use with Apple Pay and Samsung Pay, in order to favor the Swiss solution TWINT, a joint venture between Switzerland's biggest banks to create a digital payments system.
"There is the suspicion that the companies agreed not to make their credit cards available for use with Apple Pay and Samsung Pay, in order to favor the Swiss solution TWINT," WEKO said in a statement.
The watchdog said it had raided the offices of various companies involved in the probe, including PostFinance, one of the country's largest banks and part of Switzerland's postal service.
Some of the companies targeted in the probe denied any wrongdoing and said they were cooperating with the authorities.
Credit Suisse said it was "surprised" by the investigation and was convinced that the allegations would prove to be unfounded. The bank said it offered Swiss consumers access to Apple Pay and Samsung Pay through its 50 percent subsidiary Swisscard and had also been in talks with Apple, Samsung and Google over how their solutions could be used.
UBS said it had tried to reach an agreement with Apple Pay over use of the Swiss bank's credit cards as early as 2016, but had not managed to come to an understanding with the company. "Although we offered a number of alternative solutions, unfortunately we weren't able to reach an agreement with Apple Pay to cooperate," a UBS spokeswoman said.
PostFinance said it did not breach Swiss cartel law and said it was cooperating with the WEKO probe.
TWINT said it was "astonished" by the watchdog's approach and said it was not under investigation. The company also said it had previously submitted a complaint against Apple over unfair competitive practices. "TWINT itself asked the (Competition Commission) some time ago to investigate discriminatory behavior by Apple toward TWINT, because Apple prevents the trouble-free use of the TWINT app on IOS devices," it said. "A decision of the WEKO in this matter is expected shortly."
An Apple spokesman in Switzerland could not immediately be reached for comment on the TWINT allegations.
Mobile payment systems have become increasingly popular around the world, as consumers seek more convenient and secure ways to pay with their smartphones. However, disputes between mobile payment providers and banks have also cropped up elsewhere. Last year, Australia's competition watchdog stopped the country's banks from collectively trying to introduce their own mobile applications for contactless payments on Apple's phones and watches.
Sources: Reuters[^2^], FinTech Futures[^3^], Mac Daily News[^4^]
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