The EU has opened an antitrust probe against Facebook’s Libra cryptocurrency plan, with the European Commission actively investigating the company’s potential anticompetitive behaviour amid concerns that the proposed payment system would unfairly shut out rivals.
Brussels is concerned that Facebook could bundle Libra with its popular platforms, including WhatsApp and Messenger, allowing it to have immediate access to Facebook’s 2.38 billion users.
The Switzerland-based Libra Association raised additional concerns, saying EU officials are worried about consumer data protection if they are connected to the cryptocurrency. Facebook is already facing the prospect of a €4.5 billion fine for its role in last year’s Cambridge Analytica scandal.
The US House of Representatives has opened its own probe against the Libra plan, while the Bank of England has also raised additional concerns over the potential use of a Facebook-backed cryptocurrency by organised crime, money laundering, and terrorist networks.