The European Union is actively probing Facebook’s Libra digital currency project for competition law violations, mainstream media report.
Facebook’s Libra Has ‘Potential Anti-Competitive Behavior’
According to Bloomberg, which cited official correspondence August 20, the European Commission is quizzing Libra participants via a dedicated questionnaire.
The document originally appeared earlier this month, and forms Libra’s latest scrutiny by international regulators.
The focus of the enquiries is “investigating potential anti-competitive behavior,” Bloomberg quoted officials are stating. In particular, it is Facebook’s spin-off in charge of administering Libra, the Libra Association, which now lies in the spotlight.
According to Bloomberg, the EU is “concerned about how Libra may create ‘possible competition restrictions’ on the information that will be exchanged and the use of consumer data.”
As Bitcoinist reported, Libra became a headache for authorities worldwide almost as soon as its whitepaper went live. With some of the world’s biggest finance names involved, concerns about data privacy and the power to control a user’s economic power continue to surface.
The US held dedicated hearings into Libra and cryptocurrency more generally in July, while China has even prepared its own state-backed digital currency in response.
The EU probe further involves the wider crypto sphere, the Commission adding it was “monitoring market developments in the area of crypto assets and payment services, including Libra and its development.”
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Facebook has promised to contend with the worries of regulators regarding Libra, while sources have acknowledged it may never launch at all.
Given the company’s user data handling record, one Bloomberg correspondent said commenting the EU move,