Over the last two years Facebook has been a regular target of European regulators, and the plan for its new crypto-currency, Libra, is bringing the social media giant under new scrutiny. The FT reports:
Facebook’s new digital currency, Libra, is under early scrutiny from the EU’s antitrust regulators, according to two people familiar with the matter.
The European Commission has sent out questionnaires to groups involved with the Libra project as part of a preliminary information-gathering operation, amid concerns the currency could unfairly disadvantage rivals, the people confirmed.
Facebook and the commission both declined to comment on the investigation.
The social media company has drawn heavy criticism from regulators, central bankers and politicians since it announced plans to launch a low-cost digital currency alongside 27 other companies — including Visa, Mastercard, Uber and Spotify — by the end of next year. Each of the partners has pledged to invest $10m in the project.
The social network also plans to integrate its own Libra-backed wallet, known as Calibra, into Facebook services such as WhatsApp and Messenger.
The commission is “currently investigating potential anti-competitive behaviour” after fears over “possible competition restrictions” relating to the use of consumer data, according to a document seen by Bloomberg on Tuesday.
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