The European Union is setting up a new financial data sharing system that will promote the development of new digital financial products. Apple and other U.S. companies, however, may not get access to it. Here are the details.
Big Bank vs. Big Tech
For the past couple of years, Europe has been setting up the FiDA (Financial Data Access) regulation, which will require banks and financial institutions to share customer data with third parties, provided the customer opts in.
In a nutshell, the EU’s idea behind FiDA (which is an extension of the current Open Banking framework) is to give customers greater control and ownership over their financial data, while encouraging developers to build new, more personalized financial products and services on top of it.
American companies, however, may be excluded from FiDA. As The Financial Times reported, Germany has moved to block Apple, Amazon, Google, and Meta from gaining access to FiDA:
“In a document sent to other EU countries, seen by the Financial Times, Germany suggested excluding Big Tech groups ‘to promote the development of an EU digital financial ecosystem, guarantee a level playing field and protect the digital sovereignty of consumers’.”
In response to Germany’s request, Big Tech lobbying groups were quick to claim that “incumbent banks,” rather than Big Tech, are the gatekeepers, and that limiting access to FiDA will further escalate the ongoing tensions between Europe and the Trump administration.
Last month, President Trump threatened on Truth Social to impose tariffs on countries he said were ‘discriminating’ against U.S. companies:
“As the President of the United States, I will stand up to Countries that attack our incredible American Tech Companies. Digital Taxes, Digital Services Legislation and Digital Markets Regulations are all designed to harm, or discriminate against, American Technology.”
The FT says that “negotiations on the Financial Data Access (FiDA) regulation are entering the final stages in coming weeks,” and that, according to diplomats consulted for the report, “Big Tech groups [face] almost certain defeat.”
Do you think the EU will follow through with not letting Big Tech gain access to FiDA? Let us know in the comments.
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