Facebook would currently be under investigation by the European Union, for antitrust issues in relation to its Libra cryptocurrency project.
Since the official announcement of the launch of Libra and Calibra, government institutions have expressed deep concern for user privacy, and although the US courts were the first to raise questions, this time it was the European Union’s turn.
The Bloomberg media outlet issued a statement in which it indicates that the European Commission “is currently investigating potentially anti-competitive behaviors” by the Libra Association. The media report describes the document as a questionnaire, which suggests that the European Union is concerned that the digital payment system planned by Facebook, Libra, may unfairly disqualify its competitors.
Apparently, the governance and membership structure of the Libra Association is currently under scrutiny. Several of the largest companies, including Mastercard and Visa, have already signed unclear agreements to join the pound association of the project.
The European Commission is also concerned that Libra may cause “possible restrictions on competition” in the use of information, including the use of user data. It is also studying the possible integration into Facebook of applications such as WhatsApp and Messenger, which use Libra.
According to the media, these types of questionnaires are generally issued at the early stages of the consultation meetings to collect information carried out by the European Union.
The European Commission is the executive branch of the European Union, which proposes and enforces legislation, and implements policies and budget. According to the medium mentioned above, both the commission and Facebook refused to comment on the document.
Facebook has faced a great wave of concern from regulators around the world due to plans for its digital currency. Lawmakers in the United States have even asked Facebook to stop the development of this project until the issues that cause concern can be examined and discussed.
A delegation of lawmakers from the United States has been established, led by Congresswoman Maxine Waters to discuss Libra with the head of information security in Switzerland when visiting the country this week.
Having joined the Libra Association in Switzerland, Facebook said it expects the Swiss Federal Commissioner for Data Protection and Information to be its regulator in data privacy. However, Commissioner Adrian Lobsiges has previously commented that, in fact, Facebook has not contacted him regarding the Libra project, and has requested more information.
According to a Reuters report published on Wednesday, Lobsiger’s office yesterday said it expects to provide specific details about Libra by the end of this month.