The EU has planned to exclude Meta, Apple, Google and Amazon from a new system for sharing financial data.
The system is designed to enable the development of digital finance products for consumers, and Big Tech groups are losing a battle in Brussels to gain access to the EU’s financial data market, despite Trump’s threats regarding higher tariffs for countries that ‘discriminate’ against US companies.
The EU’s decision to exclude US companies
If it holds, the decision could support banks in their efforts to gain a competitive advantage over Big Tech groups, which could use their data to eliminate intermediaries from their customers while extracting much of the value of knowing individuals’ financial behaviour.
After two years, negotiations on the FiDA regulation are entering the final stages, with Big Tech groups facing almost certain defeat, according to the Financial Times. The reform aims to support third-party service providers to access data from banks and insurers and use it to offer new services, including financial advice. However, the EU’s financial industry fights to restrict access, claiming that the risk of digital gatekeepers exploiting sensitive data held by European institutions to strengthen their position is high.
These concerns are backed by the European Parliament, the European Commission, and by European capitals such as Berlin. In a document sent to other EU countries, Germany suggested excluding the American groups to promote the development of the EU digital financial ecosystem, protect the digital sovereignty of consumers, and guarantee a fair playing field.
EU member states and the European Parliament are hoping to reach a deal on the final text of the regulation this autumn. The potential exclusion of these companies would risk renewing transatlantic tensions after Brussels and Washington agreed on a trade deal in late July. Big Tech lobbying groups are already warning that consumers and platforms will lose out if the current direction holds. Big Tech representatives believe that a decision like this could limit consumer choice and entrench legacy players who already hold power over customer data.
