US tech giants to be excluded from EU’s Financial Data Access initiative, which enables the sharing of certain customer financial data
US tech giants to be excluded from EU’s Financial Data Access initiative, which enables the sharing of certain customer financial data
Big Tech firms are set to be excluded from access to a European Union (EU)-wide financial data-sharing initiative, in a boost to banks battling to retain market share.
The rules, which are set to come into force soon, were designed to give third-party businesses access to financial data, to allow them to develop services for consumers.
Firms like Meta, Google and Amazon are keen to develop financial products based on data insights, and banks could be cut out if the tech firms develop and offer products and services directly to consumers.
Banks fear the Big Techs could gain significant value from the financial data they hold, at their expense, while the EU wants to protect consumers and its markets.
The Financial Times has revealed that one EU diplomat said: “Big Tech players are actually losing the lobbying fight.”
The European parliament and commission supported fears from banks that sensitive data could be exploited and also increase the domination of US Big Tech firms.
