Blockchain
The Luxembourg competition authority is opening a market investigation into blockchain technology, according to an announcement made on Tuesday. The study may represent the first probe of its kind into Web3’s economics.
The government of the European Union member – which is a major financial center despite its small size – has said it sees the technology underpinning crypto as key to the digital and environmental transition.
“Given the strong potential of the sector, it is important to ensure that Web3 players can develop in a market that is effective and competitive,” the Autorité de la concurrence said in a statement.
Competitive market studies collect information from companies operating in the industry about how a particular market operates and can form the basis for further enforcement action for antitrust violations, such as abuse of a dominant position.
This study will examine where and how newer blockchain-based companies compete with existing Web2 internet companies, documenting potential anti-competitive practices implemented against Web3 projects, the regulator said.
Thibaut Schrepel, an associate professor at the University of Amsterdam who will assist with the probe as an external expert, told CoinDesk that the project could break new ground.
“To my knowledge, this is the first market study conducted by a regulatory body that aims to protect Web3, not attack it,” said Schrepel.
The European Commission will release a policy paper on the metaverse later this year, which is expected to consider options if major companies such as Meta Platforms (META) look to squeeze smaller rivals out of the market.
Read more: EU competition officials are concerned about competition in the Metaverse
