Apple Challenges Brazilian Banks Over NFC Access Amidst Regulatory Scrutiny
In a recent development, Apple has firmly opposed demands from Brazilian financial institutions seeking broader access to the iPhone’s Near Field Communication (NFC) technology. This dispute centers on allegations that Apple is restricting third-party payment providers’ use of NFC, thereby favoring its own services like Apple Pay.
Background of the Dispute
The contention began when Brazil’s central bank, Banco Central, along with the banking lobby group Febraban, urged the Administrative Council for Economic Defense (CADE), the nation’s competition authority, to investigate Apple’s NFC policies. They argued that Apple’s limitations on NFC access could be stifling competition and innovation in the mobile payment sector.
In response, Apple presented several counterarguments:
– Market Share Perspective: Apple highlighted that it holds only about 10% of Brazil’s smartphone market, suggesting that its influence over the mobile payment landscape is limited.
– Developer Access: The company pointed out that since 2024, third-party developers have been granted access to the iPhone’s NFC capabilities, indicating a willingness to collaborate with external entities.
– Consumer Impact: Apple asserted that the Brazilian market is abundant with payment options, emphasizing that Apple Pay’s presence does not harm consumers or exclude competitors. They also noted that Brazilian law does not prohibit Apple from charging fees for its services.
The Role of PIX in the Brazilian Payment Ecosystem
A significant element in this debate is PIX, a free and instant payment system introduced by Banco Central in 2020. PIX has rapidly become the most utilized payment method in Brazil, primarily operating through QR codes. In an effort to modernize, Banco Central introduced a contactless protocol for PIX. While Google adopted this feature, Apple declined, considering it non-essential given the prevailing reliance on QR code transactions.
Apple’s Recent Statement to CADE
In a recent communication to CADE, Apple reinforced its position, accusing Brazilian banks and payment service providers of attempting to leverage Apple’s proprietary technologies without appropriate compensation. The company’s legal team stated:
> There is a desire by third parties—specifically banks and payment service providers—to act as ‘free riders’ on Apple’s proprietary technologies, without having to compensate Apple for its related investments in research and development and for ongoing services—such as provider audits, due diligence, and continuous monitoring of the security of payment infrastructures.
Furthermore, Apple expressed concerns that the proposed NFC access model by these entities could introduce user friction. Unlike Apple Pay and Apple Wallet, which facilitate seamless switching between payment cards, the new model might require users to select a different payment solution each time they wish to use a different card, potentially diminishing user convenience.
Regulatory Interactions and Broader Implications
This statement from Apple follows a confidential meeting between the company’s representatives and Banco Central’s director of regulation, Gilneu Francisco Astolfi Vivan, on January 15. The meeting’s agenda was described as covering regulatory issues, but specific details remain undisclosed.
This confrontation is not isolated. Apple has faced similar scrutiny globally regarding its NFC policies. For instance, in May 2025, Apple defended its right to charge fees for NFC access in Brazil, emphasizing that no law prohibits such charges and that its market share does not constitute a monopoly. Additionally, in July 2025, CADE recommended penalties against Apple for allegedly imposing restrictive conditions on app developers, which could hinder competition.
Global Context and Apple’s Stance
Internationally, Apple has encountered regulatory challenges concerning its NFC practices. In December 2025, Swiss authorities initiated a preliminary investigation into Apple’s NFC access terms, focusing on whether they comply with Swiss antitrust laws. Similarly, in December 2023, Apple, along with Visa and Mastercard, faced a class-action lawsuit in the United States, accusing them of conspiring to stifle competition in point-of-sale payment services.
Apple’s consistent defense revolves around the argument that its NFC policies are designed to ensure user security and privacy. The company contends that unrestricted access to its NFC technology could compromise these principles. Moreover, Apple emphasizes that its practices are in line with legal standards and that it actively collaborates with various partners to enhance the payment ecosystem.
Conclusion
The ongoing dispute between Apple and Brazilian financial institutions underscores the complex interplay between technological innovation, market competition, and regulatory oversight. As mobile payment systems continue to evolve, the balance between proprietary technology control and open access remains a contentious issue. The outcome of this case could have significant implications for how technology companies and financial institutions collaborate and compete in the rapidly changing digital payment landscape.
