Since Facebook proposed its Libra cryptocurrency, the project has been met with significant concerns and intense skepticism from both data protection activists and financial market regulators.
The latest concern raised about the Libra project is from the European Union (EU), as the social media giant’s crypto project is reportedly facing an antitrust investigation from the EU.
In a document seen and reported by Bloomberg yesterday, the EU’s paper in the form of a questionnaire was sent to groups related to the Libra project.
The document shows that the EU is “currently investigating potential anti-competitive behavior” related to the Libra project amid concerns that it would likely shut out rivals.
Per the report, concerns about “possible competition restrictions” as regards to information sharing and the use of customers’ data, the Libra project may create was also raised by the regulators.
Additionally, the commission is also looking at the possibility that Facebook may likely combine Libra-backed applications with its other existing social media platform, including Whatsapp and Messenger in the future.
As announced in June, the Facebook’s Libra project which is expected to be launched next year will be used as a digital currency that will facilitate global settlement across borders, without the friction of fiat currencies.
The Libra Association, a non-profit organization in collaboration with other major companies, including Mastercard, Visa, Uber, and Spotify, will oversee the governing structure of the project.
This is not the first time concerns would be raised over Facebook’s proposed digital currency. Regulators are concerned that Facebook’s digital currency may likely gain widespread adoption by Facebook’s 2.38 billion users, which could create a global currency that authorities may find it difficult to control.
Last month, U.S. lawmakers stated that the project should be stopped because of Facebook’s popularity. As reported, the House of Representative proposed a draft discussion bill to prevent big tech firms like Facebook from establishing crypto-related services or offering related financial services.