peopleBankPresident Yi Gang was in International Settlement a few days agoBank(BIS) said at the International Conference on Supervision of Large Technology Companies that China’s financial technology is booming under the impetus of technological progress. “The continuous development of financial technology has also brought new challenges to the Chinese regulatory authorities. One is to engage in financial business without a license or beyond the scope; the other is payment business violations; the third is to develop unfair competition through a monopoly; the fourth is to threaten individuals. Privacy and information security; fifth is to challenge traditionBankBusiness model and competitiveness of the industry. “
“Platform companies naturally have the attribute of’winner takes all’, which may trigger market monopoly and reduce innovation efficiency.” Yi Gang said that some domestic platform companies seize the market through cross-subsidy and other methods, and implement exclusive policies after gaining market dominance, such as exclusion. Competitors enter the platform and provide services, and the QR code payment business only supports the relevant APP scan code payment within the technology group.
In response to the above-mentioned challenges, China has continued to make up for the “shortcomings” of the regulatory system and has successively introduced measures to promote the healthy and sustainable development of the platform economy.
Yi Gang said that in this process, he has always adhered to three concepts: one is to always adhere to the “two unshakable” to support the healthy development of the private economy, the Internet economy and the digital economy; the second is to continuously enhance policy transparency and predictability, and protect Property rights and intellectual property rights, protection of privacy, and promotion of fair competition; the third is to adhere to the direction of marketization, rule of law, and internationalization, create a good business environment, expand high-level opening to the outside world, and strengthen international cooperation in scientific and technological innovation in the digital field.
Yi Gang said that relevant measures are embodied in three regulatory practices. One is that finance, as a franchise industry, must be licensed to operate; the second is to establish an appropriate firewall to avoid the spread of financial risks across departments and industries; the third is to disconnect improper connections between financial information and commercial information to prevent “data-network effects” —The closed-loop effect of “financial business” creates monopoly.
Specifically in terms of strengthening anti-monopoly supervision and maintaining fair competition order, Yi Gang introduced that China will issue anti-monopoly guidelines in the field of platform economy in 2021 to strengthen anti-monopoly and prevent the disorderly expansion of capital. In response to the unfair competition behavior of platform companies in the payment field, large-scale Internet platform companies are encouraged to open and close the scene, giving consumers more choices in payment methods, thereby creating room for development for small and medium-sized enterprises.
“In the future, we will give full play to the supervision of anti-monopoly authorities to curb monopolistic behavior that abuses a dominant market position, and actively respond to new types of monopoly issues such as algorithmic discrimination,” said Yi Gang.
Regarding financial businesses that must be licensed to operate, Yi Gang said that platform companies should follow the principle of “same business, same supervision” when conducting financial business.The People’s Bank of China requires platform companies to fully divest themselves of businesses related to personal credit reporting and provide credit to financial institutions through licensed personal credit reporting agenciesInformation service, Turning information monopoly into information sharing. “In the next step, we will continue to improve the relevant systems and implement the licensed operation of personal credit investigation and other financial services.”
In terms of strengthening data protection and protecting consumer rights and interests, Yi Gang said that since 2016, China has successively promulgated cyber security laws, data security laws, and personal information protection laws to regulate information collection and the “overlord clause”, and urge financial institutions to strictly enforce Collect, use, and keep user information in accordance with the principles of lawfulness, fairness, and minimum necessity, and fully protect personal privacy and consumers’ rights to know, consent, object, and complaint. The People’s Bank of China has just issued the “Administrative Measures for Credit Investigation Services”, which regulates the protection of personal information and the legitimate rights and interests of information subjects in the field of credit investigation.
“In the next step, under the premise of ensuring personal privacy and data security, we will explore the realization of more accurate data confirmation, more convenient data transactions, more reasonable data use, and continue to stimulate the vitality of market players and technological innovation capabilities.” Tsuna said.
(Source: Shanghai Securities News)
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