Luxembourg Antitrust Authority Launches Investigation into Blockchain and Web3 Competition

Luxembourg Antitrust Authority Launches Investigation into Blockchain and Web3 Competition

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Luxembourg Antitrust Authority Launches Investigation into Blockchain and Web3 Competition
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A Western European country, Luxemburg, is making moves amid moves by individual jurisdictions in the EU for dedicated crypto regulations.

In the latest development, the country’s competition regulator, the Autorité de la Concurrence, launched a market investigation into Web3 and Blockchain-based firms.

The regulator seeks to understand the relationship between blockchain-based products and services and existing digital companies (Web2 companies).

This study represents the first of its kind research into the economics of Web3 and blockchain technology.

Ensure fair competition between Web2 and Web3

Despite its small size, Luxembourg occupies a strategic position in the EU economy.

In June 6 press releasethe 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 develop in a competitive and well-functioning market,” the Autorité de la Concurrence said.

Like all competitive market studies, the Autorité de la Concurrence’s study will gather information from companies active in the blockchain and web3 sectors.

This information can form the basis of future enforcement actions against companies that violate antitrust rules, such as abuse of a dominant position.

It can also provide a basis 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, Thibaut Schrepel, as an external expert to assist in the market investigation.

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Schrepel is an expert in antitrust law and innovation and has published a book titled: “Blockchain + Antitrust: The Decentralized Formula.”

In a statement to Coindesk, Schrepel said:

“To my knowledge, it is the first market research conducted by a regulatory agency that aims to protect Web3, not attack it.”

The EU ensures a safe space for blockchain innovation

This development will follow approval of the EU’s Markets in Crypto Assets (MiCA), set to enter into force sometime in June 2023.

According to reports, the MiCA laws will protect investors by increasing transparency and ensuring a comprehensive framework for digital asset issuers and service providers.

It will also enforce compliance with anti-money laundering rules while maintaining financial stability and promoting innovation and attractiveness of the crypto sector.

The European Union has been busy promoting Web3 initiatives recently. In a recent development, the European Commission wants to launch a policy document on the metaverse later in 2023.

The soon-to-be policy will ensure healthy competition among companies in the metaverse, said the EU’s antitrust chief, Margrethe Vestager, in a statement.

The EU wants to ensure that larger companies, such as META, do not swallow or suffocate smaller rivals.

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