Regulation

Jamie Dimon: Big Tech Should Prep For Big Reg

JPMorgan Chase CEO Jamie Dimon said tech giants need to brace themselves for a similar slew of tough regulations to what big banks faced after the financial crisis.

“They haven’t had the benefit of the full monty yet,” said Dimon to CNBC, adding that “if I were them, I’d be getting prepared for it.”

Big tech companies like Facebook, Google and Amazon have been feeling the wrath of lawmakers in recent years. Democratic presidential candidate Elizabeth Warren has even proposed a plan to break up large tech firms, saying they “have too much power.”

In addition, Google was just hit with its third antitrust fine by European Union (EU) regulators. This time, the company was fined €1.49 billion ($1.7 billion USD) for limiting how some websites used display ads sold by competitors. This fine is smaller than the combined $7.67 billion that the EU fined Google in the past two instances.

It was also recently reported that France is looking to levy a 3 percent digital tax on revenues derived from business done in that country by global tech firms with certain revenue levels. Facebook, Google and Amazon would be subject to the tax, as would a few dozen companies operating in France.

“When you get attacked by someone, you get one group, it could be every country, every AG, every regulator, all at the same time,” Dimon noted. He added that, “they should really gear up and look at it as a very broad-based, extensive type of thing they have to deal with, and listen carefully to the complaints from the other side. There are sometimes legitimate complaints you should be very reactive to.”

It is surprising that Dimon would be so candid about the matter, especially since tech giants often turn to investment banks, including JPMorgan, for advice on acquisitions, as well as raising capital in debt and equity markets.

——————————

LATEST PYMNTS REPORT: MARCH 2020 B2B API TRACKER  

B2B APIs aren’t just for large enterprises anymore — middle-market firms and SMBs now realize their potential for enabling low-cost access to real-time payments and account data. But those capabilities are only the tip of the API iceberg, says HSBC global head of liquidity and cash management Diane Reyes. In this month’s B2B API Tracker, Reyes explains how the next wave of banking APIs could fight payments fraud and proactively alert middle-market treasurers to investment opportunities.

TRENDING RIGHT NOW