Regulators to scrutinize Big Tech data
Big Tech companies including Google, Facebook and Alibaba could be forced to share their data on financial services in order to prevent unfair competition, reports Reuters.
As Facebook’s plan for its Libra currency faces scrutiny, the global financial watchdog raises questions for financial stability, competition and data privacy. According to the Financial Stability Board, these Big Tech companies must share data on financial services customers with banks and financial technology firms.
The FSB further went on to say that tech companies like Microsoft, Amazon, eBay, Baidu, Apple, Facebook and Tencent, have massive databases, while some offer asset management, payments and lending. Hence, just like banks in Europe and elsewhere share customer data with third party “fintech” companies, so should be the case with these Big Tech organizations.
“Big Tech firms’ ability to leverage customer data raises the question of whether – and the degree to which – authorities could consider the potential to promote the mobility of data between the various actors that are involved in the provision of financial services,” the FSB said.
“Doing so may help encourage competition and help ensure a level playing field amongst market participants.”