Luxembourg’s Authority Is Learning More About Web3
- The Luxembourg Competition Authority has launched a market investigation into blockchain technology.
- The research might be the first of its type investigating the economics of Web3.
- This research will look at where and how emerging blockchain-based enterprises compete with current Web2 companies, as well as possible Web3 initiatives.
The Grand Duchy of Luxembourg’s Competition Authority is conducting market research to better understand the link between products and services based on blockchain technology (Web3 projects) and existing digital companies (Web2 companies).
The government of the European Union member, which despite its tiny size, is an important financial center, has said that the technology behind crypto is critical to digital and environmental change.
“The Luxembourg government has identified blockchain technology as a key element in the green and digital transition of the economy,” the Autorité de la concurrence said.
Blockchain is a technology that allows for the storage and transmission of data without the need for a central authority. It is a distributed database in which information given by users and connections within the database are validated and sorted into blocks, establishing a chain.
Competition market studies gather information about how a given market functions from enterprises involved in the area and may serve as the foundation for additional enforcement proceedings for antitrust violations such as abuse of a dominant position.
The Luxembourg Competition Council is undertaking market research to better understand the relationships between Web3-based goods and services and incumbent digital enterprises.
Given the complexities of this industry, the French Competition Authority enlisted the assistance of Professor Thibault Schrepel, Associate Professor of Law at Vrije Universiteit Amsterdam (ALTI) and Faculty Affiliate at Stanford University’s Center for Legal Informatics (CodeX), as an external expert to contribute to market research.
Thibault Schrepel is a renowned worldwide expert on blockchain competition regulations and cryptoeconomics, and the author of “Blockchain + Antitrust: The Decentralization Formula” and, most recently, “The Complex Relationship Between Web2 Companies and Web3 Projects”.
In the following weeks, the Autorité de la concurrence will contact different Luxembourg and European companies in the industry in partnership with Professor Schrepel.
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