The big banks have lost a battle to gain access to NFC in iPhones.

The Australian Competition and Consumer Commission (ACCC) has denied a request by CBA, Westpac, NAB, and Bendigo and Adelaide Bank to band together to bargain with Apple and boycott its Apple Pay platform.

“The ACCC is not satisfied, on balance, that the likely benefits from the proposed conduct outweigh the likely detriments. We are concerned that the proposed conduct is likely to reduce or distort competition in a number of markets,” ACCC chairman Rod Sims said in a statement.

“While the ACCC accepts that the opportunity for the banks to collectively negotiate and boycott would place them in a better bargaining position with Apple, the benefits would be outweighed by detriments.”

The banks already enjoy access to NFC chips in Android devices, allowing them to produce their own integrated digital wallets and payment options for customers.

They were seeking the same level of access to Apple NFC, and wanted to collectively lobby Apple to drop its restriction on passing Apple Pay fees on to their customers.

Apple refused on security grounds, and also argued that the banks were trying to delay the growth of Apple’s own Apple Pay NFC app in Australia and avoid Apple Pay fees.

The ACCC agreed that opening up access to the iPhone's NFC chip would increase competition in the mobile payments market, but said it would create distortions and reductions in competition as well.

“First, Apple and Android compete for consumers providing distinct business models. If the applicants are successful in obtaining NFC access, this would affect Apple’s current integrated hardware-software strategy for mobile payments and operating systems more generally, thereby impacting how Apple competes with Google,” Mr Sims said.

“Second, digital wallets and mobile payments are in their infancy and subject to rapid change. In Australia, consumers are used to making tap and go payments with payment cards, which provide a very quick and convenient way to pay.

“There is also a range of alternative devices being released that allow mobile payments; for example, using a smartwatch or fitness device. It is therefore uncertain how competition may develop.

“Access to the NFC in iPhones for the banks could artificially direct the development of emerging markets to the use of the NFC controller in smartphones. This is likely to hamper the innovations that are currently occurring around different devices and technologies for mobile payments."

A spokesperson for the banks said they were “disappointed” by the ACCC's ruling.

“This case has always been about consumer choice. The applicants made this application to seek to ensure they could participate in the future of mobile wallets, and not have the course of development for mobile wallets in Australia dictated by a single overseas corporation,” spokesperson Lance Blockley said.

“Whilst we thank the ACCC for their time and diligence in reviewing our application, and recognising both the imbalance in negotiating positions and that there were real issues for consideration, we are disappointed that the finely balanced draft determination was not tipped in the final decision, given our considerable effort to demonstrate the public benefits inherent in open NFC access, and the subsequent flow on benefits for mobile wallet innovation and competition in Australia.”