59 COMPETITIVE ANALYSIS In its investigation, the Autorité highlighted the great "agility" of FinTech to develop new innovative services while seizing the oppor- tunities created by regulation. Furthermore, it notes that the traditional banking actors are using various strate- gies to keep abreast of the most innova- tive segments of the market: takeovers via acquisitions, equity investments, internal Moreover, the pre-installation of mobile med "unprofitable" to be provided in isolation, development, etc. contactless payment solutions in certain such as the deposit and cashing of cheques Finally, the opinion highlights the emergence phones (or the introduction of ergonomic and cash, could therefore be called into ques- of large Big Tech platforms, which enjoy mul- shortcuts that facilitate access to a given tion. While a scenario in which FinTech breaks tiple advantages: solution) could present risks for competition, away completely from the banking system by • they have considerable financial stren- for example if the result was that consumers creating their own infrastructure seems unli- gth, which allows them to make substan- were ’captured’ by an ecosystem, and thus kely today, it is nevertheless clear that, wit- tial investments in various new technologies potentially exposing them to abusive beha- hout having the experience of banks in the that facilitate the development of innovative viour. payments sector, Big Tech has mastered, payment solutions; or even controls, certain innovative tech- • they control ecosystems with very large A risk due to the holding of data nologies which could, in the future, play a user communities and have access to large by account servicing payment decisive role in the service chain. Their pre- data sets; service providers sence in the payments sector could there- • they are able to offer integrated solutions In the context of the implementation of the fore be strengthened, in particular through the that make a fluid and efficient "customer European regulation, it must be ensured that conclusion of new partnerships with banking journey" possible; the development of the businesses of provi- actors. There is therefore a risk that traditio- • they have lower marginal costs than tradi- ders of payment initiation and account infor- nal banking actors will ultimately find them- tional banks, which enhances their ability to mation services is not hindered, in particular selves confined to operative tasks involving offer their payment solutions free of charge; by restrictions that make access to data less significant fixed costs (regulatory burdens, • they rely on the banking sector for the fluid or negatively affect the experience of physical network, payment infrastructures), effecting of payments, but are not subject customers using the services offered by while being marginalised in the value distri- to the same regulatory constraints; these partners. bution chain. • they enjoy a strong reputation that facili- tates user loyalty. The competition risks of using Opinion 21-A-05 of 29 April 2021 blockchain The competition risks that may arise from THE RISKS IDENTIFIED using blockchain technology, while not spe- cific to the payments industry, could mate- A risk that the market power rialise in the payments industry. These risks of Big Tech will be strengthened may fall under the rules prohibiting anticom- and that consumers will be petitive agreements as well as those prohi- locked in biting abuse of a dominant position, and The data collected by Big Tech in the context may be caused in particular by the actor(s) of their core business activities could give controlling access to the blockchain or by them a significant advantage in the pay- their users. ments industry and, conversely, the data col- lected via the payment services they offer The risk of the universal banking could allow them to make their respective model being called into question platforms even more attractive. and the marginalisation of Furthermore, the opening or closing of traditional banking actors effective access to the NFC antenna on While the current developments in the pay- smartphones (Near Field Communication ments sector are leading to more supply and technology which enables contactless pay- an improvement in the quality and diversity ment by mobile phone) has a real impact of products and services offered at attrac- on the ability of the actors who have deve- tive prices to consumers, they are also likely loped contactless mobile payment solutions to lead to a profound change in the way the to offer their services on devices equipped sector operates. The universal banking model, with these antennas. which allows certain services which are dee- View the summary of the opinion by Isabelle de Silva (in French) ACTIVATING TRANSFORMATION