Apple warned moves in Germany to force the company to open up its Apple Pay mobile-payments system to rivals could hurt data protection, and the security of financial information. A German parliamentary committee unexpectedly voted in a late-night session on Wednesday to force the tech giant to open up Apple Pay to rival providers in Germany.
An amendment added to an anti-money laundering law was adopted recently by the German government, and will come into effect next year. The legislation did not name Apple specifically, but will force operators of any electronic money infrastructure to offer access to rivals, for a reasonable fee. The law highlights the growing desire in Germany for tighter regulation of technology, cyber-currency and electronic pay systems, as well as companies able to manipulate social systems.
Apple Pay threatens to undermine traditional banks’ dominance of payment systems, and government oversight of spending and savings. Apple states, “we are surprised at how suddenly this legislation was introduced, and fear that the draft law could be harmful to user friendliness, data protection, and the security of financial information."