The FCA Practitioner Panel has written to the regulator highlighting perceived imbalances in how tech giants collect and utilize consumer spending information
Major banks have urged for stricter regulation on Apple due to concerns that the company’s access to millions of iPhone users’ transaction data could lead to an unfair advantage in the financial services industry.
The Financial Conduct Authority (FCA) Practitioner Panel, comprising executives from banks and insurance firms, has written to the regulator highlighting perceived imbalances in how tech giants collect and utilize consumer spending information.
The letter, endorsed by Barclays’ UK chief executive Matt Hammerstein, specifically mentions Apple and Amazon, emphasizing the necessity to address their data access. It points out that Apple’s integration of bank accounts with its iPhone’s Wallet app is anticipated to dominate open banking activity, which is funded by major banks, by the end of the current year.
Additionally, the letter raises concerns about Amazon’s extensive knowledge of shopping behaviours potentially granting it a competitive edge.
Consistent access to information across competitors is necessary for fairness in the market, the letter stated. The ability of big tech to access private and public retail data and combine it with AI and advanced analytics may create the conditions for market dominance.
While we have no doubt that big tech often does deliver good experiences and outcomes for their customers, they are under no obligation to do so, let alone demonstrate that, while big tech obtains these data privileges for free and have no obligations on how it is used, it added.
The FCA is currently investigating whether significant tech firms benefit from preferential access to customer data that could bolster their market dominance. A report on this inquiry is expected to be released following a “call for input” by the summer.
Apple began offering iPhone users the ability to view their bank transactions and balances via the Wallet app last year, capitalizing on the open banking framework.