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The
European Commission sent out a questionnaire earlier this month
to various parties involved in Libra, giving respondents two to
three weeks to provide feedback, the people said. By sending out
a questionnaire, the EU could be preparing the ground for a
formal investigation.
The EU competition enforcer's main focus is on the use of
consumer data, the people said.
Facebook has linked up with 28 partners in a Geneva-based entity
called the Libra Association, which will govern its new digital
coin, which is due to launch in the first half of 2020.
"The Commission is in particular concerned about the possible
competition restrictions that may result from the Association,
especially with regard to information that will be exchanged and
the use of consumer data," the questionnaire said.
The Commission, which can fine companies up to 10% of their
global turnover for breaching EU antitrust rules and order them
to change their business practices, declined to comment.
Facebook was not immediately available for comment.
The EU's queries about Libra follow recent calls from
politicians, central bankers and regulatory watchdogs for tight
regulation of Libra to avoid disrupting the global financial
system amid concerns that it may be used to launder money and
could also affect the privacy of users.
The EU document also sought information on the scheme's
governance structure and to what extent it is open to others.
Bloomberg was the first to report about the Commission's
questionnaire.
(Reporting by Foo Yun Chee, additional reporting by Thomas
Wilson in London; Editing by Susan Fenton)
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