FILE PHOTO: a Small toy figures in the painting are to be seen in the representations of the virtual currency in the front end of the Scale, the logo in this illustration picture the 21 of June, 2019 at the latest. REUTERS/dado Ruvic
BRUSSELS (Reuters) – eu antitrust regulators want to know whether Facebook’s (FB.D) the proposed Scale cryptocurrency, and the use of the consumer data forms, the potential anti-competitive restrictions, people familiar with the matter said on Wednesday.
The European Commission sent out a questionnaire earlier in the month, with the various parties involved in the Scale, giving respondents two to three weeks to get feedback from the people on a regular basis. By sending out a questionnaire to the EU may be preparing the ground for a formal investigation.
The EU’s competition enforcer’s main focus is on the use of the data of the consumers, the people said.
Facebook has tied up with 28 partners, a Geneva-based entity called the ‘ Scale of Association, which shall be applicable to the new digital currency, which is due to launch in the first half, by the year 2020.
“The Committee is particularly concerned about the potential competitive constraints that may arise as a result of the Association, and, in particular, with regard to the information that is being exchanged, and use of consumer data,” the survey said.
The Commission, which can fine companies up to 10 per cent of their global turnover for breach of the ec antitrust rules, and in order to change the business, declined to comment. Facebook was not immediately available for comment.
The EU’s query about the Balance to follow recent calls from politicians, central banks and regulatory watch dogs for tight regulation of the balance in order to prevent the disruption of the global financial system is in the midst of concerns that it could be used for the purpose of money laundering, and it may also have an effect on the privacy of its users seriously.
The EU document also sought information on the structure of the governance structure and the extent to which it is to be open to others.
The international monetary fund, was the first to report on the basis of the Commission’s decision.
Reporting by Foo Yun Chee, additional reporting by Thomas Wilson in London; Editing by Susan Fenton