ANTITRUST

EU Investigating Libra For ‘Anti-Competitive Behavior’

G7 Leaders: Libra Must Resolve Regulatory Issues

European Union antitrust regulators announced that they are “currently investigating potential anti-competitive behavior” related to Facebook’s Libra.

According to Bloomberg, the EU authority said in a questionnaire released earlier this month that it has concerns that Libra could create “possible competition restrictions” on the information exchanged and the use of consumer data.

In addition, the EU said regulators are also looking into the possible integration of Libra-backed applications into Facebook services, including WhatsApp and Messenger, with a specific focus on the governance structure and membership of the Libra Association.

Facebook and the commission both declined to comment on the investigation.

Facebook has said it will release Libra sometime in 2020. The social media giant’s plan has brought out a multitude of regulators, lawmakers and leaders around the globe who are concerned that the cryptocurrency won’t be regulated closely enough and could potentially upend the global financial market.

During an upcoming visit to Switzerland, a group of six U.S. lawmakers, led by Rep. Maxine Waters, will hold a meeting with Swiss Federal Data Protection and Information Commissioner (FDPIC) Adrian Lobsiger.

Earlier this month, the Information Commissioner’s Office (ICO) in the U.K. said it sent out a statement to Facebook and 28 other outfits asking for more information about the Libra project. The agency wants to ensure that Facebook will only ask for the minimum amount of the required data and that the company uses a transparent process. It also wants more information on how the data will to be shared between members of the Libra network.

The ICO statement was signed by authorities in Europe, Africa, Australasia and the Americas.

While recently being grilled by the U.S. Senate, David Marcus, Facebook’s head of blockchain projects, confirmed Facebook’s commitment that it would not look to bring Libra online in the U.S. without regulatory support.

——————————–

Latest Insights:

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. In the November 2019 AML/KYC Report, Zillow’s Justin Farris tells PYMNTS how the platform incorporates stringent authentication without making the onboarding and buying experiences too complex.

TRENDING RIGHT NOW