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Libra Case and Competition Concerns

Libra Case and Competition Concerns

22.08.2019
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According to Bloomberg, the antitrust authorities of the European Union are closely monitoring Facebook's cryptocurrency project - Libra.

Immediately after the announcement of the Facebook cryptocurrency project, European Union officials expressed concern that Libra might not be in line with various regulations, including security, privacy and competition sectors; and made it clear that the project would undergo scrutiny by regulatory authorities. The European Commission is "currently investigating the potentially anti-competitive behaviour" of the Libra Association amid concerns that the proposed payment system will have an unfair advantage over other companies in this sector. European regulators, officials are also concerned about the possibility of restricting competition in the context of user data exchange.

While Facebook is not the only major company associated with the works on the Libbra project, experts say that due to access to data from 2.4 billion users, it is Facebook that will play a vital role in the project, which might be judged to be anti-competitive behaviour.

The 21st century came with the new technologies that facilitated new ways of collecting, accessing, analysing and using the data, across multiple borders and jurisdictions. The current trend of an increase in antitrust investigations and legislation in the digital sector is a promising opportunity for the system to finally adjust to new developments of the 21st century and catch up with the pace of technological advancement.