The Australian Competition & Consumer Commission has denied Australian banks an interim authorisation to jointly negotiate with Apple over mobile payments.
Last month, the Commonwealth Bank of Australia, Westpac Banking Corporation, National Australia Bank, and Bendigo and Adelaide Bank requested the ACCC if they could "engage in collective negotiation and boycott activities with Apple in relation to its e-commerce Apple Pay platform and with other third party wallet providers in Australia".
ACCC chairman Rod Sims said: "The ACCC has considered interim authorisation within a short timeframe at the request of the applicants. However, given the complexity of the issues and the limited time available, the ACCC has decided not to grant interim authorisation at this time. The ACCC requires more time to consult and consider the views of industry, consumers, and other interested parties."
The banks and card issuers want, among other things, the ability to use near-field communication (NFC) hardware on Apple devices to enable tap and pay through the banks' own digital wallets.
The consumer watchdog stated that this response is not indicative of a final decision and took into account the continuing effects on market competition, the request's urgency, possible harms to the applicants and possible public benefits and detriments.
The ACCC expects to release a draft decision for consultation in October before making a final ruling.
Apple does not allow third-party electronic payment apps to be loaded onto its smartphones. The banks are looking to negotiate for access to Apple's phones without being accused of violating anti-competition laws.
CBA, NAB, Westpac and Bendigo and Adelaide Bank want users to be able to install the systems they have already developed.
In a statement a spokesperson on behalf of the banks said: "The ACCC today has determined they need more time to review the application and consult third parties, before making a draft determination. The applicants have been in consultation, and will continue to be in consultation with the ACCC up until the final determination is made.
"This application seeks to ensure that Australian customers are able to choose between different mobile wallets to make payments easily. This application has broader industry benefits too. A number of other Australian institutions have supported the ACCC granting the authorisation, including Heritage Bank, Tyro and Indue."
In a submission to the ACCC, Apple urged the watchdog to reject the request of the applicants claiming if granted "the request would harm consumers, lead to less competition and less innovation, and create a troubling precedent".
The vendor also stated that it had "struggled to negotiate agreements with the Australian banks", only recently signing with ANZ. "These banks want to maintain a complete control over their customers," stated Apple.
Update: This story has been updated in order to include a statement on behalf of the applicants.
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