The Data Sharing Paradox: BigTechs in Finance
forthcoming in European Competition Journal
13 Pages Posted: 23 Jun 2020 Last revised: 19 Aug 2020
Date Written: May 28, 2020
The European wave of regulatory interventions aimed at promoting access to data and data sharing shows no signs of stopping. However, concerns are being expressed about alleged unintended consequences of data portability in financial markets. In particular, new calls have been voiced to contain the engagement of BigTech platforms with retail banking. The paper argues that asymmetrical regulatory measures imposed on BigTechs entry in the financial industry are likely to tilt the market in favor of incumbent banks to the detriment of small players as well as consumer welfare. Such an early regulatory intervention would actively help larger traditional banks to entrench their market power further, ultimately frustrating the pro-competitive potential of the access to account rule enshrined in the revised Payment Service Directive (PSD2).
Keywords: Big data, BigTech, FinTech, digital platforms, financial markets, PSD2, access to account rule, competition law, regulation
JEL Classification: K21, K22, K23, L15
Suggested Citation: Suggested Citation