Facebook is having a hard time convincing regulators and lawmakers to approve its new digital coin Libra. Now that both the United States and India have presented concerns about the project, it was the time for the European Union to do it.
Antitrust regulators from the EU are currently investigating the potential that Libra has for “anti-competitive behavior”, according to Bloomberg. The Libra Association, they believe, could easily turn into a monopoly that could easily shut the doors from rivals in the industry.
While Facebook would mainly use the token, the Libra Association would reunite several major companies in the technology area which are said to join forces in order to regulate the process.
The officials from the commission are concerned that Libra may be used in order to create restrictions for the competition and that Facebook and the Libra Association will not handle customer data as well as they say they will, which is quite frankly not surprising. Facebook has quite a bad track record when it comes to protecting information from its customers.
There is an investigation going on right now in order to determine whether Facebook may use its power unfairly to weed out competitors or not. Facebook, according to Bloomberg, has declined to comment on the investigation right now.
Facebook’s Libra, in case you lived under a rock the last few months, is a sort of semi-centralized cryptocurrency that would be used by Facebook, Instagram and WhatsApp users all over the world. As its user base would be simply huge, there are several concerns about how much power Facebook and the Libra Association will have on their hands after the launch.