Apple has hit back at claims made by Australia's largest bank it is holding a tight grip on control over the nation's emerging online payments system.
Responding to a parliamentary payments inquiry, the tech giant slammed assertions made by Commonwealth Bank, it was stifling competition by prohibiting third party digital wallets on its iOS devices, such as iPhones.
Apple's lash out at the major bank for mischaracterising its ApplePay technology for its own "commercial gain', comes as a separate review into the payments system recommended new powers be given to Treasury, that could order big tech to comply with domestic regulations.
The Silicon Valley giant in its supplementary response said CBA is attempting to muscle and lock out future competition across the payments landscape, to retain its market leading position as the biggest provider.
CBA chief executive Matt Comyn told the committee in July, Apple would make companies sign a gag order in relation to the fees it took to access ApplePay and its near-field-communications (NFC) technology.
"Commentary by Commonwealth Bank suggests the organisation would like the public to believe Apple is unreasonable in both protecting our intellectual property and that we charge unreasonable fees for participating in the Apple Pay program," Apple said in its response.
"Allowing Commonwealth Bank to have sole control of the NFC controller would assist them in not only locking out competitors but also prevent innovation around non-bank use cases such as car keys or health insurance cards."
CBA has refuted it made misleading claims to the committee, saying it "has only ever sought fair access to the NFC for all financial institutions".
"Our concern about Apple's market position is undiminished," a CBA spokesman said.
The US tech giant said CBA had invested $1.8bn into bringing ApplePay to Australia following the demand from customers.
It also noted CBA made misleading assumptions about its market share, saying it only has a 10 per cent share of all credit and debit spend in Australia.
Mr Comyn during his evidence said Apple had a more than 80 per cent share on card spending occurring on digital wallets across Australia.
In contrast, Google, Apple's major competitor in digital wallets allows third parties access to the NFC technology and does not charge fees to businesses wanting to use the service.
Apple however, says the comparison between the two technologies is baseless because the Google Android system has a broader business model of monetising data.
It also noted fees charged to card issuers to use ApplePay are on a "level playing field".
"The largest banks in Australia pay exactly the same as the smallest and all banks enjoy equal access in terms of usability and prominence," the company said in its submission.
"Apple's fees are no different to the fees that banks pay other service providers."
On Monday, the Payments System Review recommended new powers be given to the Treasurer over regulation bodies such as the Australian Competition and Consumer Commission and the Reserve Bank, to respond to the evolving changes in the payments sector.
The review conducted by Scott Farrell found the federal government needs a greater role in setting the "strategic direction" of the payments framework and new designation powers for both Treasury and the RBA.
"The Treasurer has general oversight powers and responsibility over the financial system and is able to coordinate financial regulatory agencies," the review said in relation to its recommendations.
"The Treasurer is not limited by the mandates of the financial regulators and has the flexibility to respond to issues that fall outside the remit of individual regulators."
The review also noted further regulatory considerations are needed in relation to digital wallets, buy now, pay later services, central bank digital currencies and cryptocurrencies.
Treasurer Josh Frydenberg said the Morrison Government is carefully examining the recommendations of the report and Treasury is likely to provide a response by the end of year.
"The review also examined how the regulatory architecture could create more productivity-enhancing innovation and competition, increase the understanding of alternative payment methods, and ensure that Australia is well placed to take advantage of new technologies," Mr Frydenberg said in a joint statement with financial services minister Jane Hume.
CBA flagged it supports specific proposals in the Farrell review, particularly ensuring the payments market can support future competition.
"There is broad agreement the system needs to be significantly re-shaped to incorporate the rapid changes underway in payments in Australia and globally," a CBA spokesman said.
"In particular, Mr Farrell's recommendations underscore the importance of a system that fosters competition and innovation to deliver the best outcomes for Australian consumers and the economy as a whole."