European Union authorities are looking into the possible effect of what Libra might have on market competition. Facebook has a vast user base, which gives them an advantage over its competition. According to a Bloomberg report, European Union Antitrust regulators are investigating into the anti-competition behavior of Libra Association.
According to the report, authorities are concerned about how Libra can be a threat to the other payment services apps and can use its power to dominate the market. As of now, no official statement has been released by Facebook on the investigation.
Previously Facebook announced that they would go forward with the project by complying with regulators from all around the world. Facebook has been facing heat from regulators around the world since they have announced to launch Libra. The investigation focuses on the governance structure of the project. No one other company from Libra association commented on the investigation.
Aside from the antitrust division, other regulators are also examining the crypto and payment services market to anticipate the effect of Libra. Authorities are also concerned about how Libra would handle the users’ data. Previously Facebook faced a penalty of $5 billion for mishandling the data of users.
It seems like things are not cooling down for Facebook’s digital currency, in the last two months since Facebook announced the digital currency project, the social media giant has been continuously facing scrutiny from all over the world.
