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FCA turns the microscope on Big Tech

FCA turns the microscope on Big Tech

The UK's Financial Conduct Authority intends to step up its investigations into the competitive implications of Big Tech companies in financial services.

The FCA’s Big Tech plans are included in a feedback statement to its November call for input on data sharing between Big Tech and financial services firms. Currently, Big Tech firms can access financial services data through Open Banking but are not required to share their data with the financial industry.

Nikhil Rathi, chief executive at the FCA says: "Big Tech’s growing emergence in financial services has already made life easier for consumers, but it is still unclear how valuable their data will become in financial markets.

"That’s why we want to work with Big Tech to examine how their data could be most helpful for financial firms and their customers in future, and to ensure competition evolves effectively."

If the FCA’s analysis finds Big Tech data is valuable in financial services, it will look to incentivise more data sharing between Big Tech and financial firms through its Open Banking and broader Open Finance work, he says.

If it finds potential risk or harms from non-sharing of data, the FCA will look to develop proposals for the Competition and Markets Authority (CMA) to consider when they are given powers to regulate designated firms’ digital and data conduct, expected via the Digital Markets, Competition and Consumers (DMCC) Bill.

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