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Facebook’s Libra Faces Huge EU Antitrust Issues

By Mark Lemon – Cryptocurrency Dealer

Facebook has just attracted heavy scrutiny from the European Union regarding trust issues associated with its crypto project, Libra.

According to a document by Bloomberg, the European Commission is at the moment, “currently investigating potential anti-competitive behavior” by the Libra Association.

The document, per the report, is described as a questionnaire indicating that the Commission is concerned about Facebook’s cryptocurrency locking competitors unfairly out.

With more users on the social network than China and the US combined, it has huge exposure and reach to sell crypto for use on the platform.

The Libra Association’s governance structure and membership is facing severe scrutiny. In spite of that, various big-named companies including Visa and MasterCard have signed loose agreements, partnering up with the Libra Association on their project. This gives these organisations the opportunity to see the benefits of blockchain to buy and sell cryptocurrency for everyday transactions, without building one from scratch.

The European Commission is also worried the Libra Association could lead to “potential competition restrictions” on the use of information like user data. It’s also considering the integration of some of Facebook’s other apps like WhatsApp and Messenger that could utilise Libra somewhere down the line. It has been suggested that user could buy crypto and send via one of these messaging services.

Bloomberg says that this kind of questionnaire is issued in advance on EU information-gathering inquiries.

The European Commission is the EU’s executive arm, which both proposes as well as enforce legislation, and implements policies and the budget. Neither Facebook nor the commission would comment on the document.

In the past couple of months, Facebook has been facing criticism from the world’s regulators for its cryptocurrency plans. US lawmakers have even called to cease working on the project until the issues can be examined and discussed more carefully.

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