BIG TECH COMPANIES WITH A PLATFORM BUSINESS MODEL IN THE FINANCIAL MARKET AND DIRECTIONS OF THEIR REGULATION
Abstract
The article studies the features of the activities of Big tech companies and the reasons for their rapid spread in the financial market. The reasons for the rapid growth of the role of Big tech companies in the financial services market, which include the network effect, when a large number of users are attracted to the digital financial platform and the economies of scale increase, have been identified; gatekeeping, when network influence can allow a company to use its dominant position in a particular market to influence it and control the formation of framework conditions for the functioning of the market; the potential of a large base of hidden users, created through extensive client networks in conditions of low cost of attracting customers via the Internet, which allows large technology companies to quickly expand their presence in market segments outside their core business; large investment opportunities, which allows you to allocate significant resources for the development of innovation and the acquisition of the most modern technologies. It has been determined that the powerful expansion of Big tech companies in the financial sphere can both significantly increase its efficiency and contain a number of risks. To balance the positive and negative consequences is called upon to financial regulation and updating of regulatory legal acts on data protection and competition in accordance with the specifics of the activities of Big tech companies. The article shows dependence of approaches to regulation of banks, non-bank financial institutions and non-financial organizations, as well as large financial and technological groups on the institutional structure of the country, where responsibility for regulation lies with different authorities, each of which has its own goals and tools. It has been determined that the difficulties in regulating Big tech companies are associated with their unique characteristics, which are due to the risks of interrelated various types of activities. The sources of risks are defined as insufficient coordination of their operations with partner companies, customer-oriented value chain, the possibility of transferring risks from other financial companies, dependence on critical external services, the inability of the infrastructure of the financial system to quickly and effectively respond to the growing presence of Big tech companies in the financial system. The directions of modernization of financial regulation to minimize the risks of large technology companies are outlined: revision of the consistency of rules focused on objects and types of activity, introduction of an integrated approach to the regulation of large technology companies with a platform business model, expansion of international cooperation in the field of regulation and supervision. This will support the manifestation of the positive effects of large financial and Big tech companies with a platform business model and minimize their risks
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