Big tech regulation: what is going on?

Several regulatory initiatives have emerged in China, the European Union and the United States to address new challenges presented by big techs. While each of these jurisdictions has focused on different policy areas, the greatest number of initiatives have been conducted in the area of competition. The initiatives generally seek to achieve a balance between addressing the different risks posed by big techs and preserving the benefits they bring in terms of market efficiency and financial inclusion. While recent initiatives constitute important steps in addressing risks posed by big techs, additional regulatory responses might be needed. These will include the development of entity-based rules to address the unique combination of risks posed by big techs.

This paper reviews various regulatory initiatives developed in China, the European Union and the United States. It offers a typology of regulatory actions and focusses on five policy domains: competition, data, conduct of business, operational resilience and financial stability.

JEL classification: G18, G21, G23, G28, L41, L51.

Keywords: big techs, activity-based regulation, entity-based regulation, competition, data protection, data-sharing, conduct of business, operational resilience, fintech, financial stability.