Matt Comyn, CEO of Commonwealth Bank, is calling for stricter regulation of global tech giants like Apple and Google, accusing them of benefiting from unfair advantages in the Australian market. As the Reserve Bank of Australia (RBA) debates changes to card surcharges, Comyn argues these companies should play by the same rules as local businesses.
The Uneven Playing Field
As digital payments become more ubiquitous, businesses are increasingly relying on tech giants like Apple and Google to handle transactions. However, these companies don’t face the same costs as Australian banks, who are required to fund the infrastructure behind card payments. According to Comyn, this creates an “uneven playing field.” Local banks, like Commonwealth Bank, are footing the bill for maintaining the payment systems, while tech giants are profiting without similar obligations.
“I think having a sense of fairness and regulatory neutrality is important and should be a principle that’s as widely adopted as possible,” Comyn said to Sky News. He added that it’s essential for these tech companies to operate under the same rules as local businesses, including paying their fair share of taxes. This follows a broader issue that has been troubling local industries for some time: tech giants like Apple are accused of paying very little tax in Australia compared to their profits.
In 2024, Apple reportedly paid just $153 million in tax on $12.5 billion of revenue. Meanwhile, major banks in Australia collectively paid around $10 billion in taxes. This stark contrast highlights the ongoing imbalance between multinational tech companies and Australian businesses that contribute significantly to the country’s economy.
The Role of the Australian Banking Association
The Australian Banking Association (ABA) has also voiced its concerns, criticizing Apple, Google, and other tech giants for not helping fund the infrastructure they rely on. “Australian banks and other domestic players have done the heavy lifting to fund and build some of the safest and most advanced payments infrastructure in the world,” said ABA CEO Simon Birmingham. He warned that if this issue isn’t addressed, Australia risks losing control over its payment systems, which could have long-term consequences for domestic businesses.
For Comyn, this debate isn’t just about the cost of card payments or taxes; it’s about fairness in competition. “It’s critical we preserve the ability of domestic players to continue to invest in our payments system,” he explained. While he recognizes that competition can drive innovation and improve services for consumers, he believes the playing field must be level, with both local banks and tech giants adhering to the same standards.
What’s Next?
As the RBA prepares to publish its review on card payment costs and surcharging by the end of March, the future of Australia’s payment systems hangs in the balance. Will the government push for more regulation on foreign tech companies? And how will this affect local businesses and consumers in the long run? Only time will tell, but one thing is clear: a fairer system is needed for all players in the market.
