As a result of their expanded financial offerings, Apple and other digital titans have sparked antitrust worries
Recent expansions into the financial services industry by Apple and other digital giants including Amazon, Alphabet (Google), and Meta (Facebook) have raised antitrust concerns. While the UK’s Financial Conduct Authority (FCA) is adopting a broader approach than its US counterpart, the Consumer Financial Protection Bureau (CFPB) is investigating Apple’s conduct.
Existing banks like Goldman Sachs manage some of Apple’s financial services like Apple Card. Apple’s new “Pay Later” function has attracted the attention of the Consumer Financial Protection Bureau (CFPB) because the company is essentially acting as its own bank.
There are now just indicators of an Apple Card introduction in the US, but there is hope that it will also come to the UK. One such company is Credit Kudos, a UK-based firm that conducts credit assessment checks and was recently acquired by Apple.
There are a number of large IT companies releasing new banking products. As an illustration, Amazon.co.uk, an internet insurance retailer, opened for business just last week. There is a risk that corporations would use consumer-friendly measures introduced in the near term to stifle rivalry in the long run, which is a major issue for the FCA.
In a post made earlier today, the FCA stated:
“By combining financial services with their existing business, Big Tech firms can bring benefits to consumers. These might be innovative new offers with highly competitive pricing driven by increased efficiency, delivering healthy competition with incumbent financial services providers.
But in the longer term, Big Tech firms could pose competition risks if they rapidly gain market share, and they are able to exploit market power.”
While it hasn’t taken any concrete steps as of yet, the FCA has expressed interest in starting a dialogue regarding a “pro-competitive approach to digital markets” with tech firms, consumers, and even other authorities.
