With strong German backing, this measure represents a significant setback for Big Tech's attempts to influence Brussels and marks a decisive step forward towards so-called European digital sovereignty.
At the heart of this initiative is the new Regulation on Access to Financial Data (FiDA), designed to profoundly transform the financial sector. The regulation aims to create an open finance ecosystem in which consumers can authorize third parties, such as fintechs, to access their information from banks and insurance companies. The goal is to drive innovation and stimulate the emergence of digital financial products and services, ranging from financial advisory tools to personalized savings solutions.
Although the innovative potential is evident, European banks and regulators have expressed concern about the entry of giants like Google and Apple into this new market. The prevailing fear, shared by several financial institutions, is that these companies will use sensitive data from European consumers to further consolidate their dominant position.
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According to a document released by the Financial Times (FT), Germany advocated this exclusion to encourage the development of a European digital financial ecosystem, ensure fair competition, and safeguard consumers' digital sovereignty. With FiDA negotiations nearing completion, an agreement is expected to be reached soon.
On the other hand, representatives of large tech companies argue that this exclusion will ultimately penalize consumers. Daniel Friedlaender, of the Computer and Communications Industry Association, considered that the EU decision will reduce consumers' freedom of choice and favor incumbents, thus potentially limiting competition in the new ecosystem.
This decision comes amid growing regulatory tension between Europe and the United States. Former US President Donald Trump even threatened retaliatory tariffs against laws he believed discriminated against American technology companies. By taking this stance, the European Union sends a clear signal that it intends to prioritize its strategic autonomy, even if it means alienating some of the biggest names in global technology.
