You are here:
05 September 2018 / news

FinTech: ACM foresees genuine risk of foreclosure

On 19 December 2017, the ACM published a more specific study on the position of fintechs in the payment services system.

city at night

Banks have information that fintechs require in order to be able to offer their services. One of the ACM’s conclusions is that there is a genuine risk of foreclosure of these new providers. The ACM distinguishes between front-end and end-to-end fintechs. Front-end fintech companies offer payment initiation and/or account information services. The input required by these companies consists of account information from a customer with a specific bank. According to the ACM, this means that banks may have a dominant position with regard to this type of information. Since banks (potentially) compete with front-end fintechs, the ACM sees a genuine risk that these companies will be excluded.

End-to-end fintech companies offer payment solutions (such as Paypal and Afterpay). In order to be able to provide these services, they need to obtain access to systems for clearing and settlement. They can obtain such access indirectly by opening a payment account with a bank. The ACM observes that, in view of the number of providers, it is unlikely that there is market power of banks when issuing payment accounts. Nevertheless, the ACM notes that it will closely monitor that the provisions in the PSD2 Directive that ensure access to payment accounts for end-to-end providers are adhered to.

Contact

If you have any further questions on this issue or would like to receive more information, please contact your trusted adviser at the Loyens & Loeff Competition Team.


The Proposed EU Rules on Foreign Subsidies

The EU Commission published a so-called White Paper dealing with the alleged distortive effects caused by foreign subsidies in the EU Single Market. read more

Apple Under Siege In Europe

Investigations against Apple are rapidly piling up and it has even already received its first fine (of EUR 1.1 billion. read more

European Commission Proposes Rules on Foreign Subsidies

On 17 June 2020, the European Commission (the ‘Commission’) published a so-called White Paper dealing with the alleged distortive effects caused by foreign (non-EU)... read more