FILE PHOTO: Representations of virtual currency are displayed in front of the Libra logo in this illustration picture, June 21, 2019. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) – Facebook Inc’s (FB.O) proposed digital currency Libra faces anti-trust probe by European Union regulators, Bloomberg reported on Tuesday, citing a document seen by the organization.
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, said the report. (bloom.bg/2MtdtBd)
Libra is a global crypto-currency by Facebook, set to launch in 2020.
EU officials said they were concerned how about 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, U.S. lawmakers pointed out that Facebook had not shown it could be trusted to safeguard the world financial system and consumers’ data.
Facebook as well as a spokeswoman for the European Commission said they had no comment.
The company’s shares moved slightly lower on the news, but pared losses later in the day.
Reporting by Ayanti Bera in Bengaluru; Editing by Shinjini Ganguli