The competition authority in Luxembourg has announced a pioneering market study focused on blockchain technology and its impact on the emerging Web3 ecosystem.
As the first probe of its kind, this study aims to examine the competitive landscape and potential anti-competitive practices in the Web3 sector.
Luxembourg, a prominent financial center within the European Union, recognizes the significance of blockchain and Web3 in driving digital transformation and environmental sustainability.
The Importance of a Competitive Web3 Market:
The Autorité de la concurrence emphasized the importance of fostering an effective and competitive market for Web3 actors to thrive.
This market study will gather insights from companies operating in the sector, shedding light on the dynamics of competition between newer blockchain-based firms and established Web2 internet companies.
Additionally, it will assess the potential anti-competitive behaviors faced by Web3 projects, paving the way for future enforcement actions against breaches of antitrust rules.
Breaking New Ground:
Notably, this market study sets a precedent as it seeks to protect and support Web3 rather than targeting it.
Thibaut Schrepel, an associate professor at the University of Amsterdam and an external expert assisting in the probe, expressed the significance of this approach.
According to Schrepel, this study is the first of its kind conducted by a regulatory agency with the explicit goal of safeguarding and nurturing the Web3 ecosystem.
European Commission’s Metaverse Policy Paper:
In parallel, the European Commission plans to release a policy paper later this year addressing the metaverse.
This paper is expected to explore options to prevent dominant companies, like Meta Platforms (formerly Facebook), from squeezing out smaller competitors.
The study conducted by the Luxembourg competition authority aligns with the broader efforts of the European Commission to ensure fair competition and innovation in the rapidly evolving digital landscape.