Facebook Inc.’s proposed digital currency Libra faces anti-trust probe by European Union regulators, Bloomberg reports, citing a document it has seen.
The European Commission is “currently investigating potential anti-competitive behavior” related to Libra amid concerns that the proposed payment system would unfairly shut out rivals, the report said.
Libra is a global crypto-currency by Facebook, set to launch in 2020.
EU officials said they were concerned about how Libra may create “possible competition restrictions” on the information that will be exchanged and the use of consumer data, according to Bloomberg.
The EU regulators are also examining the possible integration of Libra-backed applications into Facebook services such as WhatsApp and Messenger, said the report.
Last month, US lawmakers said Facebook had not shown it could be trusted to safeguard the world financial system and consumers’ data.
Facebook shares moved slightly lower on the news, but pared losses later on Tuesday.
Meanwhile, Switzerland’s privacy watchdog expects to receive details on Facebook’s Libra cryptocurrency by the end of this month, a spokeswoman for the agency said on Tuesday.
Facebook’s Libra project head David Marcus told US senators earlier this year he expected the Swiss authority to be Libra’s privacy regulator, yet the Federal Data Protection and Information Commissioner (FDPIC) had at that time yet to be contacted by Libra’s organizers.
The FDPIC in July asked the Libra Association, the Geneva-based group which is to oversee the proposed digital currency, for further information. Reuters
– Contact us at [email protected]