Luxembourg’s Antitrust Authority Scrutinizes Competition in the Realm of Blockchain and Web3

According to an announcement on Tuesday, the Luxembourg competition authority is launching a study into the blockchain technology market. This study may be the first of its kind to examine the economics behind Web3.

The government of a member country of the European Union, which is a major financial center despite its small size, has stated that it believes the technology behind cryptography is crucial for the digital and ecological transition.

In a press release, the Autorite de la Concurrence stated: “Given the high potential of this sector, it is important that Web3 players develop in a market that is both effective and competitive.”

Competitive market studies collect information from the companies operating in a particular market about how the market works. They can also serve as a basis for enforcement action against antitrust violations, such as abuse of a dominant position.

The regulator stated that the study would examine how blockchain-based companies compete with Web2 companies and would document any anti-competitive tactics against Web3 projects.

Thibaut Shrepel, a professor at the University of Amsterdam who will serve as an outside expert on the investigation, told AskFX that the project could break new ground.

Schrepel stated that “to the best of his knowledge, this is the first market research conducted by a regulator whose aim is to protect Web3 and not to attack it.”

The European Commission will appear later in this release a paper on the Metaverse this year, expecting options to be considered when large companies like Meta Platforms (META) crowd out smaller competitors.