The European Union is in the process of establishing the Financial Data Access (FiDA) regulation, an initiative designed to expand its current Open Banking framework. The regulation would compel banks and financial institutions to share customer data with third-party firms, contingent on receiving customer consent. The goal of FiDA is to provide consumers with greater ownership of their financial data and to encourage the creation of new, personalized financial services.
As the regulation nears finalization, Germany has officially proposed blocking major U.S. technology companies, including Apple, Amazon, Google, and Meta, from gaining access to the system. A document from Germany, shared with other EU countries and viewed by The Financial Times, outlined the reasoning for the proposed exclusion. The document stated the move was intended “‘to promote the development of an EU digital financial ecosystem, guarantee a level playing field and protect the digital sovereignty of consumers.’”
Lobbying groups representing the U.S. tech companies have responded to Germany’s proposal. They contend that “incumbent banks,” not technology firms, are the true gatekeepers of financial data. The groups also cautioned that restricting access to FiDA could worsen ongoing trade tensions between Europe and the United States.
The debate occurs as former U.S. President Donald Trump has publicly warned of potential retaliation against countries he views as targeting American companies. In a statement on Truth Social last month, Trump threatened to impose tariffs, writing: “‘As the President of the United States, I will stand up to Countries that attack our incredible American Tech Companies. Digital Taxes, Digital Services Legislation and Digital Markets Regulations are all designed to harm, or discriminate against, American Technology.’”
Negotiations on the FiDA regulation are reportedly entering their final stages in the coming weeks. According to diplomatic sources consulted by The Financial Times, the major U.S. tech companies are facing “almost certain defeat,” suggesting their exclusion from the system is the likely outcome.
