The UK Financial Supervisory Authority (FCA) announced a call for notifications (Call for Input (CFI). Through these, the FCA seeks to respond to whether the situation of ‘data asymmetries’ has enabled the Big Tech companies to gain more market power. According to the statements collected by the FCA this year, there are industry concerns about possible data asymmetries between Big Tech and others. This is because Big Tech’s data sets are outside the rules on data sharing, while the datasets of financial services firms are not. This means that Big Tech can access the financial services concerned, but not vice versa.

The FCA explained that the data available under the sharing initiatives can be combined with data from the core digital activities of Big Tech, which can then be used through intelligence and artificial intelligence to “enhance competition”.

By accessing Big Tech datasets, the competitive disadvantage of Big Tech vis-à-vis firms providing financial services can be mitigated, as these data reveal an insight into consumers’ risks and financial profiles, which weighs the market situation.

The FCA also wants to explore how the concentration of consumer data can benefit Big Tech. Respondents were also asked to inform the FCA of any other means by which Big Tech can gain an advantage over its competitors in the UK market.

Participants in the CFI included financial services providers, competitors, including fintechs, industry organisations, consumers, consumer interests groups, national and international competition authorities and regulators, and Big Tech themselves. The information is open until 22 January 2024.

More information on:

https://www.fca.org.uk/publication/call-for-input/potential-competition-impacts-data-asymmetry-between-big-tech-firms-and-firms-financial-services.pdf