Luxembourg's Antitrust Authority Initiates Probe into Blockchain and Web3 Competition
A country in Western Europe, Luxemburg, is making moves amid actions by individual jurisdictions in the European Union for dedicated crypto regulations.
In the latest development, the country's competition regulator, Autorité de la Concurrence, launched a market study on Web3 and Blockchain-based firms.
The regulator seeks to understand the relationship between blockchain-based products and services and existing digital companies (Web2 firms).
This study represents the first-of-its-kind probe into the economics of Web3 and blockchain technology.
Despite its small size, Luxermber occupies a strategic position in the EU economy.
In the June 6 press release, the antitrust authority identified blockchain technology as a key element in the digital and sustainable economic transition.
The agency recognized blockchain technology’s potential in the future economy.
"Given the high potential of the Web3 sector, it is important to ensure that Web3 players can evolve in a competitive and well-functioning market," said the Autorité de la Concurrence.
Like every competitive market study, Autorité de la Concurrence’s study will collect information from active companies in the blockchain and web3 sector.
This information could form the basis for future enforcement actions on companies that breach antitrust rules, such as abuse of a dominant position.
It could also provide the bases for making regulatory decisions.
According to the Autorité de la Concurrence, the study will assess how blockchain-based startups and firms compete with existing Web2 companies.
It will also record potential anti-competitive practices implemented against Web3 projects.
The Competition Authority appointed an associate professor of law at Amsterdam University,
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