The competition authority in Luxembourg has taken a significant step by initiating a market study focused on blockchain technology and the emerging Web3 sector.
This study, which is believed to be the first of its kind, aims to examine the competition dynamics within these industries and identify potential anti-competitive practices.
With Luxembourg recognizing the importance of blockchain and Web3 for the digital and environmental transition, ensuring an effective and competitive market for Web3 actors is a key priority.
- Luxembourg’s Focus on Blockchain and Web3: As a prominent financial center within the European Union, Luxembourg views the underlying technology of cryptocurrencies as crucial for driving digital innovation and sustainability. The government seeks to support the development of Web3 actors by ensuring a competitive market environment.
- Purpose of the Market Study: Market studies conducted by competition authorities gather information from companies operating in specific sectors to understand market dynamics. In this case, the study will explore how blockchain-based companies, representing Web3, compete with traditional Web2 internet companies. Additionally, the study will document any potential anti-competitive practices targeting Web3 projects.
- Breaking New Ground: The involvement of Thibaut Schrepel, an associate professor at the University of Amsterdam, as an external expert in this market study is notable. Schrepel highlights that this study is distinctive as it aims to protect Web3 instead of scrutinizing or attacking it, making it a pioneering initiative within regulatory agencies.
- European Commission’s Metaverse Policy Paper: In conjunction with Luxembourg’s market study, the European Commission is expected to release a policy paper later this year that will address the metaverse. This paper will likely consider potential measures to prevent dominant companies like Meta Platforms (formerly Facebook) from squeezing out smaller competitors, reflecting the broader efforts to ensure fair competition within the evolving digital landscape.