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Australia consumer watchdog to monitor fintech acquisitions

Australia consumer watchdog to monitor fintech acquisitions

(31 October 2016 – Australia) The Australian Competition and Consumer Commission (ACCC) will closely monitor any plans that involve the nation's banks buying up smaller fintech rivals or striking blockchain cooperation deals, its chairman announced.

ACCC Chairman Rod Sims said the regulator had not yet examined any major deals involving Australia's "Big Four" banks acquiring fintech startups.

However, he said any proposed transactions in that area would face scrutiny.

"I think we need to, as an organisation, take a really close look at these things," Sims said.

"This means making a forward-looking judgment."

"Will these things be disruptive in the future?" Sims asked. "They may be small now. What can they unlock in the future?"

He said the ACCC was also keeping an eye on developments in blockchain technology. Sims said depending on the nature of the cooperation on blockchain, the big banks might have to seek ACCC permission for such projects.

Three of the big four - CBA, Westpac and NAB - are seeking regulatory authorisation to collectively negotiate with Apple to install their own electronic payment applications on iPhones.

Sims said the ACCC was expected to issue a draft determination soon. "Apple Pay is a very complex matter," he said.

"You can look at it is in a sense someone challenging the banks. And you can look at it as the biggest company in the world keeping something exclusive to itself," he said. "We are working our way through that."

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