The Center for Advanced Studies on the Foundations of Law and Finance invites you attend a seminar on
"Common Ownership in Fintech Markets"
Anna Tzanaki, Lund University
to be held on Monday, 20 March 2023 at 02:15-03:30 PM (CET)
HoF 1.28 and online via Zoom
Zoom URL
Meeting ID: 677 3184 0077
Password: 274282
Abstract: Is common ownership in fintech companies an empirically significant phenomenon? What impact does it have on competition and innovation in fintech markets and what implications does it carry for competition law enforcement? This chapter studies these questions, providing evidence and insights regarding the extent of common shareholdings held by different types of investors in different types of firms and the likely concerns in selected fintech market segments and countries. It also comments on how the specific ownership and governance structures of fintech firms may materially influence the magnitude and systemic nature of effects associated with common ownership.
Fintech markets differ in a number of important ways from traditional markets, which are usually less dynamic. Fintech firms are seldom publicly listed companies, for which the common ownership phenomenon has been more extensively empirically studied. This affects the empirical and theoretical dimensions of potential competitive effects. On the other hand, it also creates distinct challenges and opportunities for competition law enforcement, which have thus far been under-theorised and underappreciated. By shedding light on these novel issues surrounding common ownership in fintech as well as the complex relationships between fintech competition, innovation and investment, this chapter aims to deepen the analysis of the implications of common ownership for the operation of firms and markets. As such, it also aims to provide useful guidance to antitrust policymakers for appropriate future action.
The structure of the chapter is as follows. Section II presents empirical evidence on the extent of common ownership in fintech markets across various types of firms, investors and countries. Section III studies the potential impact of common ownership on fintech firms’ behaviour and market competition. Section IV discusses the implications of the findings for competition law enforcement. Section V concludes summarising the key takeaways of the chapter.
