EU to exclude “Big Tech” from new financial data sharing system

The European Union (EU) is moving to exclude US tech giants such as Meta, Apple, Google and Amazon from a new financial data-sharing system, despite US President Donald Trump's warning of higher taxes on countries that discriminate against US businesses.

With strong support from Germany, the EU believes that this decision aims to promote the development of the digital financial ecosystem within the bloc, while creating conditions for banks to strengthen their position amid concerns that "Big Tech" (large technology companies) will take over user data and overwhelm their intermediary role in providing financial services.

After more than two years of negotiations, the EU's Financial Data Accessibility (FiDA) regulation is entering its final stage, The Financial Times (FT) exclusively reported.

Many European diplomats say tech companies are almost certain to fail in their lobbying efforts.

“This is a rare case where Big Tech is losing the policy battle,” said an EU diplomat.

Under the original plan, FiDA would allow third-party service providers to access data from banks and insurance companies, thereby developing new products such as digital financial advice.

However, the European financial industry has strongly objected, warning of the risk that “digital gatekeepers” will exploit sensitive data and consolidate their monopoly position.

This argument quickly received support from the European Parliament (EP), the European Commission (EC) and governments with important voices in the EU such as the German Government.

In a document sent to EU member states, the German government proposed to eliminate Big Tech, in order to “promote the development of the European digital financial ecosystem, ensure a level playing field and protect the digital sovereignty of consumers.”

The EU and EP are expected to agree on the final text of FiDA this fall. However, the possibility of excluding Big Tech from the system could further strain transatlantic trade relations, just months after EU President Ursula von der Leyen and President Trump announced a trade deal by the end of July 2025.

President Trump has repeatedly threatened to impose retaliatory tariffs on countries that adopt laws or tax policies that he deems “unfair” to US technology companies.

Lobbying groups for "Big Tech" have also warned that consumers will be the ones to suffer if the EU continues this way.

“FiDA is here to help people take control of their own data and access more innovative financial services,” said Daniel Friedlaender, Director of the Computer & Communications Industry Association of Europe (CCIA Europe).

“If it gives in to traditional banks, the EU will limit consumer choice and reinforce a long-standing monopoly.”

“It is the big banks, not the digital platforms, that are the real gatekeepers,” said Kay Jebelli, of the Chamber of Progress, another advocacy group. “Discriminating against US tech companies not only prevents Europeans from accessing new digital financial services, but also risks increasing transatlantic tensions.”

(TTXVN/Vietnam+)

Source: https://www.vietnamplus.vn/eu-se-loai-bo-cac-big-tech-ra-khoi-he-thong-chia-se-du-lieu-tai-chinh-moi-post1063110.vnp