- EU considers blocking US tech from financial data sharing through FiDA regulation
- Banks back restrictions while tech groups warn of reduced consumer choice in Europe
- Trump threatens tariffs if American companies are excluded from EU digital finance
The European Union is preparing new rules on financial data sharing that could prevent US tech giants from accessing consumer information.
The Financial Times reports the draft Financial Data Access (FiDA) regulation has reached its final negotiation stage and, according to its sources, Amazon, Apple, Google, and Meta are likely to be excluded.
The measure is intended to give consumers more clout over how their financial data is used, as under FiDA, customers could allow third parties to view information held by banks and insurers, opening the way for new services such as digital budgeting tools and financial advice.
American tech firms excluded
Supporters of FiDA say the regulation will encourage innovation and give individuals greater control over their own records.
However, banks across Europe have argued against extending this access to major American tech firms as they fear that global platforms could take advantage of the information to build products that weaken the relationship between banks and their customers.
Germany has been especially vocal in wanting a ban on US tech giant involvement.
A position paper shared with other EU capitals, said keeping US platforms outside FiDA would support the development of a European digital finance sector, paving the way to fair competition and protecting consumer sovereignty.
The European Parliament and Commission have also backed limits on access.
However, industry representatives in Europe argue consumers would be the real losers if the regulation excludes US companies.
“FiDA’s original vision was to give people control over their own data and access to better, more innovative financial services,” Daniel Friedlaender, head of Computer & Communications Industry Association Europe told the Financial Times.
“By bowing to incumbent banks, the EU is going to limit consumer choice and entrench legacy players who already hold ‘gatekeeper’ power over customer data.”
Donald Trump, who has frequently criticized European rules on digital services, has warned he could impose tariffs on countries that he believes are acting against the interests of American firms.
Talks on the final text are expected to conclude later in 2025.
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waynewilliams@onmail.com (Wayne Williams)
