EU executive body reviews Libra as part of antitrust investigation

«New global currency»Facebook, Libra, has been subject to antitrust investigations by regulators in the European Union, as it may unfairly dominate the market, according to a document exclusively noted by Bloomberg.

The EU Executive Commission is looking at Libra to find out if it could violate anti-competitive laws. According to Bloomberg, given Facebook’s historical use of consumer data and their sharing of information, the Libra study reflects recent concerns expressed by senior officials and financial institutions across Europe.

Libra Association under scrutiny

The report by Bloomberg did not reveal many of the specific problems facing the EU’s highest office, but it says that they revolve around the “governance and membership structure” of the Libra Association, a Swiss-based not-for-profit organization that manages alleged digital currency.

Regulators, industry experts and the general public do not hide their skepticism about what types of privacy protections Facebook provides to consumers, especially after scandals, including Cambridge Analytica and others.

Now Libra can act as the most powerful monopoly on consumer data today, which, according to some, is an attempt by the social networking platform to seize power not only over people's social networks, but also over the monetary system as a whole.

Corporate giants like Uber, Vodafone, PayPal, Visa, Mastercard, Naspers and Stripe are among the founding members of the Libra Association, and according to the Libra whitepaper will be directly involved in maintaining the network as node operators. However, Congress and the Senate have concerns that Facebook will effectively control the association.

Can I trust Facebook?

Facebook is trying to calm fears that the project will surpass competition or violate confidentiality, saying that the network will be decentralized in five years. However, many experts disagree, stating that the Libra Association will have significant access to information and data, as it creates its own global central bank, arguing that it is unlikely that the relevant corporations will give up this power.

The study was the latest trick in Libra's apparently bumpy road to regulatory approval, as Facebook told investors in July that the plan could be phased out if it could not get permission from politicians.

However, the company announced its intention to work with lawmakers at the international level to gain approval. Facebook is currently hiring a public policy manager in London to “focus on Europe and MENA in a team that develops regulatory policies for payments and blockchains.” It looks like the social media giant will need all the help he can get for lobbying.

Who has not yet seen Libra website

Rate this article
Blockchain media