Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Thursday, August 6, 2020

The Data Sharing Paradox: BigTechs in Finance

The Data Sharing Paradox: BigTechs in Finance

Oscar Borgogno

University of Turin, Faculty of Law; University of Oxford, Saïd Business School, Faculty of Law

Giuseppe Colangelo

University of Basilicata, Department of Mathematics, Computer Science and Economics; Stanford Law School; LUISS Guido Carli, Department of Business and Management


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).

| Permalink


Post a comment