Data Flows and the BigTech-Fintech Economy: What If Any Competition Issues Exist?

BigTech and Fintech have been developing for some time. They will make a significant contribution to the global digital economy. The digital economy is the new frontier for international trade and investment. Yet, their ability to capture and use personal data is significant and not well understood by individuals or entities outside the sector. Combined, BigTech and Fintech are developing and providing new products and services for consumers, such as finance. Their reach is significant, and they have been able to provide access for consumers online that traditionally were so remote they had no access at all. This article explores the potential vulnerability of the cross-border flow of data in the emerging Fintech and BigTech economy. Coupled together the vulnerability of data in Fintech and BigTech, which are relatively under-regulated, will pose a number of challenges. Furthermore, with the increasing push of BigTechs into the Fintech sector, this may result in competitive advantages or disadvantages to a few. On the other hand, data flows and data protection are beginning to be well embedded into national legal frameworks. A challenge is the competing areas of law that are all pulling in different directions in regulating the functional arrangements of BigTech and Fintech. A related purpose is that competition law provides a very different function to minimise monopolies forming. This is on the backdrop of nation states encouraging the expansion of investment across these two sectors. On this basis, it is argued that there is the potential for anti-competitive behavior by these sectors. In drawing on the work undertaken by the EU in accordance with the General Data Protection Regulation (GDPR), this article highlights how there are competing laws, achieving different things. That is, the GPDR protects the use of personal data, and provides for data flows, while there is emerging legislation to regulate Fintech, which has been and continues to be in tension with the GDPR. It will demonstrate how the current Fintech legislation in Europe requires a level of reporting on transactions. In responding to the potential anti-competitive behaviour by these sectors, it will be argued that, in part, it can be addressed where jurisdictions have data portability and data retention laws. The paper concludes by attempting to strike a balance between economic advancement of data in the digital economy, and consumer choice, while not penalising BigTech and Fintech companies, who have been instrumental in the development this relatively new economy. This sector alone is predicted to bring significant benefits economically and socially to people around the world. [ABSTRACT FROM AUTHOR]