Asserting Europe's technological sovereignty amid American platform finance: Countering financial sector dependence on Big Tech?

Abstract

Spearheaded by major technology companies (Big Tech), digital platforms have rapidly become key infrastructures for accumulation under global financialized capitalism, with consumer convenience and underlying practices of data collection, control and analysis giving rise to platform finance. While financial institutions are partnering with financial technology (FinTech) start-ups to digitally enclose customers, American and Chinese Big Techs increasingly mobilize their platforms to offer payment services, next to expanding their platformed services to financial incumbents. Observing the growing dependence of finance on American Big Tech platforms, this paper investigates how the shift toward platform finance in the European Union (EU) unfolds as a state-mediated and power-laden process between mostly ‘domestic’ (EU) financial incumbents and ‘foreign’ (non-EU) Big Tech firms. The starting point of the analysis is the European Strategy for Data launched by the European Commission in 2020. Through document analysis, we reconstruct the circulation of code words within ‘the Brussels Bubble’ in anticipation of- and in direct response to the proposal. We find that, despite its implication in the global financial crisis, incumbent EU finance presents itself as a fix for non-EU platform domination by Big Tech. The ‘technological sovereignty’ of the EU is marshalled by incumbent finance to defend market share as would-be pan-European digital financial champions. The Big Tech ‘threat’ is thereby transformed into an argument for strategic deregulation and forced data sharing by Big Tech for the sake of maintaining a ‘level playing field’. The outcome of these processes of strategic coupling is an alignment between the interests of EU data protection and the commercial interests of platformizing European banks.