Seems like the problems for Apple are never-ending partly due to the fame and finances they have at-stake which is likely to attract a lot of firms for attention due to the fact that, that's how it's been going on so far. This is one such case where Apple is unlikely to lose.
A group of South Korean finance firms including Hankook NFC, Kona I, and Cashbee held discussions to start a complaint against Apple with the Fair Trade Commission and Korea Communications Commission, according to Business Korea.The firms' main complaint is that Apple limits access to the hardware necessary for firms to build NFC-enabled applications, like proprietary mobile wallets. Because Apple holds a virtual monopoly over its NFC chip, these firms are frustrated that they can't build proprietary iPhone apps for contactless functions that customers want, like transit payment, particularly since NFC-based apps are popular among South Korean Android users.Mobile payments are becoming more popular, but they still face some high barriers, such as consumers' continued loyalty to traditional payment methods and fragmented acceptance among merchants. But as loyalty programs are integrated and more consumers rely on their mobile wallets for other features like in-app payments, adoption and usage will surge over the next few years.
Seems like it's not just the South Koreans challenging Apple but there's also this complaint comes on the heels of one filed by several of Australia's biggest banks at the Australian Competition and Consumer Commissions (ACCC), who are looking to collectively bargain for similar access to Apple's NFC hardware in order to build their own mobile wallet applications.
The Korean firms are not only using the Australian banks fight as precedent, but hope to achieve success against Apple in tandem with those banks. Apple offers NFC support on its smartphone models (starting with the iPhone 6), but requires that the feature be used exclusively with Apple Pay. This means that Apple's lockdown on its API is denying Korean customers' access to NFC services such as mobile payment to various vendors, paying for buses and subways or identification of credit card users. "Customers have rights to enjoy various NFC-based services. But iPhone users in Korea cannot numerous services such as paying fares for buses and subway, a safe tax service and an NFC-based police report service," said Hwang Seung-ik, CEO of Korea NFC.
