SOCIETÀ ITALIANA DI DIRITTO ED ECONOMIA
Oscar Borgogno (Banca d'Italia)
Aurelien Portuese (George Washington University)
Abstract
This article provides a comprehensive analysis of the law and economics framework for antitrust interventions in developing countries, focusing on the role of regulatory expertise in market investigations within retail financial markets. With the rapid growth of FinTech, which reduces transaction costs and facilitates new market entrants, retail banking is undergoing significant transformation. Access to transaction data is a critical factor for competition and innovation in this space. However, traditional banks often restrict access to this data, creating a "data bottleneck" that stifles competition and innovation. The UK's Open Banking initiative serves as a case study, demonstrating how regulatory intervention can foster a more competitive environment by mandating data sharing. Drawing lessons from this approach, the article discusses how similar frameworks could be adapted to developing markets, where the lack of regulatory expertise and unique market conditions pose distinct challenges. The proposed economic incentive framework aligns the interests of stakeholders—antitrust authorities, consumers, financial firms, and data intermediaries—to enhance market openness, consumer welfare, and innovation. This framework aims to encourage fair data sharing, reduce anti-competitive practices, and promote a dynamic financial ecosystem in developing economies.