Canada is now about to put the digital wallet market in its crosshairs after Industry Minister François-Philippe Champagne has urged the Competition Bureau to scrutinize the sector. In a letter addressed to the Competition Bureau, Champagne highlighted recent international efforts to curb monopolistic practices in the digital wallet market.
“I am confident that you will take appropriate action — as you deem necessary to maintain a competitive economy — should there be evidence of anti-competitive conduct by major industry players,” Champagne stated.
The call follows the actions in other regions regarding the monopolistic tendencies in the digital wallet space. The European Union (EU) recently accepted Apple’s commitment to open its “tap to pay” iPhone payment system to competitors, resolving an antitrust investigation. Apple Pay, the EU noted, is currently the largest NFC-based mobile wallet, and the company had been accused of blocking rival services from accessing this technology.
The U.S. Justice Department has also taken steps against Apple, filing a lawsuit in March that claims the company restricts third-party digital wallets from using its contactless payment system.
Similarly, the United Kingdom’s regulatory body announced on Monday that it would examine digital wallets to assess potential competition and consumer issues. British regulators emphasized the growing importance of digital wallets such as Apple Pay, Google Pay, and PayPal, noting that these services now likely reach more than half of UK adults.
Mobile wallets operate using near-field communication (NFC) technology, which enables wireless transactions between a device and a merchant’s payment terminal. As the adoption of digital wallets accelerates, the control over NFC technology by a few key players has raised alarms about market fairness and consumer choice.
Champagne acknowledged the Competition Bureau’s independence but stressed the importance of monitoring for anti-competitive practices. “The issue of competition in the big tech-dominated digital wallet market should be on the Competition Bureau’s radar,” he wrote.
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