July 15, 2024
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European Union antitrust regulators have reportedly started conducting a preliminary investigation into Facebook’s plans to launch a digital currency, according to a report from Bloomberg. 

Regulators are reportedly concerned that the Libra currency could shut out rivals and create competition restrictions related to the use of information and consumer data. The EU is also examining the integration of Libra wallets into Facebook’s WhatsApp and Messenger services, according to Bloomberg.

The source of the report is a questionnaire sent out by the European Commission to groups involved with the Libra proposals. According to Bloomberg, documents like these are often part of early steps towards an official inquiry. Facebook and the European Commission declined to comment to Bloomberg on the potential investigation.

Earlier this month, data privacy regulators around the world asked for transparency about how the Libra Association will process personal data.

Facebook itself has said that it won’t launch Libra until it has fully addressed regulatory concerns surrounding the digital currency. A charter is yet to be put in place for the Libra Association, meaning the rules for how Libra will operate are still unknown.

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