Tzanaki, A. orcid.org/0009-0001-6269-3426, Alekseeva, L. and Azar, J. (2023) Common Ownership in Fintech Markets. In: Stylianou, K., Iacovides, M. and Lundqvist, B., (eds.) Fintech Competition: Law, Policy, and Market Organisation. Swedish Studies in European Law . Hart Publishing , pp. 83-128. ISBN 978-1-50996-334-8
Abstract
We investigate the extent and impact of common ownership in fintech companies. We document a range of empirical facts about common ownership patterns in fintech markets around the world and discuss their implications for competition law enforcement. Specifically, fintech firms are often not publicly listed companies, and the largest owners in this type of firm are venture capital and other types of private equity investors, as opposed to large asset management firms, which are often the largest owners in publicly listed companies. We show that the extent of common ownership is generally low among privately held fintech start-ups. However, it grows substantially with the fintech firms going public. More dynamic and larger fintech markets are characterised by lower levels of common ownership, while smaller national and product markets show substantially higher ownership overlaps. Accordingly, the estimated effects of common ownership in private fintech firms – measured by the lambdas – are higher in the smaller markets. Yet, these are still relatively very low compared with empirically observed common ownership in public fintech firms in oligopolistic markets. Finally, we comment 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. On this basis, we advise how antitrust agencies may take into account these factors in their enforcement practice and in the shaping of competition policy.
Metadata
Item Type: | Book Section |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © Anna Tzanaki. Liudmila Alekseeva. José Azar. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives License (CC-BY-NC-ND 4.0). |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Education, Social Sciences and Law (Leeds) > School of Law (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 23 Jan 2025 11:45 |
Last Modified: | 23 Jan 2025 11:45 |
Status: | Published |
Publisher: | Hart Publishing |
Series Name: | Swedish Studies in European Law |
Identification Number: | 10.5040/9781509963379.ch-004 |
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Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:222233 |