ACM is launching a market study on the activities of large technology companies (Big Techs) in the Dutch payments market at the request of the Minister of Finance. Well-known Big Techs include Apple, Google, Amazon and Facebook. In addition, the study will also examine whether Chinese Big Techs such as Tencent and Alibaba have plans to become active in the Dutch or European payment market.
The central question is what Big Techs are up to and what effects this will have on consumers and businesses. What new options will there be for payment? Will small businesses have enough opportunities to enter this market as well?
The ACM sees opportunities for innovation and competition in the payments market. Traditionally, there have been few active parties in the payments market (especially the large banks) and thus limited competition. The introduction of the European rules on access to payment data, PSD2, will allow for more competition and innovation in the payments market. Entry of large tech companies could potentially help improve competition and innovation in the payments market. And that in turn benefits people and businesses.
At the same time, the ACM realizes that entry by BigTechs also poses competitive risks. Big Techs could potentially use the strong position they have built in one market to capture another market.
The House of Representatives has asked the Minister of Finance to investigate the effects of entry by Big Techs on the Dutch payments market. At the minister's request, the ACM will conduct interviews with experts and send a survey to Big Techs, financial technology companies (Fintechs) and banks, among others, in early 2020. The ACM aims to provide insight into the current and future activities of Big Techs in the payments market by the middle of 2020. The ACM will identify the opportunities and risks to competition from their entry into the payments market.
Prior to the survey, the ACM would like to speak with companies about questions such as, for example:
What activities are Big Techs undertaking in the Dutch payments market in the coming years?
What are the competitive implications of Big Techs entering the Dutch payments market?
What should the ACM pay attention to when conducting this market study?
