Global: FCA Seeks Feedback on Data Asymmetry Between Big Tech and FS Firms

The UK’s Financial Conduct Authority (FCA) is soliciting industry evidence to determine whether the data asymmetry between Big Tech companies and financial services (FS) firms could result in entrenched market power for companies like Amazon and Google in the FS sector.

Big Tech’s presence in UK financial services, particularly in payments, deposits, and consumer credit, has been growing steadily, with the potential for further expansion and rapid market changes.

In response to this trend, the FCA initiated a study last year to assess the associated potential competition benefits and harms. Industry feedback raised concerns about the asymmetry of data and data sharing mechanisms. Financial services firms currently cannot access Big Tech firms’ datasets, which are outside of data sharing initiatives, while Big Tech can access financial services data.

The FCA aims to gather more focused information and evidence to assess the risk of Big Tech firms gaining entrenched market power due to this data asymmetry. To achieve this, the regulator has issued a ‘Call for Input,’ inviting FS firms, Big Tech companies, fintechs, trade bodies, and consumer groups to provide information and evidence by January 22.