Join Our Mailing List
Monday September 25, 2023
Bitcoin (BTC) $26,284.04   Ethereum (ETH) $1,588.78
  • Events
  • News
    • Blockchain Technology
    • Capital Raising
    • Crypto Exchanges
    • Crypto Payments
    • Gaming & Betting
    • Investment Management
    • M&A
    • Mining
    • Networks & Protocols
    • Security
    • Vendor Technology
    • Wallets
Trezor Model T
CryptoNinjas
  • Crypto & Blockchain Links
  • Real-Time Market Data
  • Bitcoin ATM Map
  • Token Offerings/Listings
No Result
View All Result
CryptoNinjas
Home Blockchain Assets

Could Anti-Trust Lawsuits Further Delay Facebook’s Launch of the Rebranded Diem Cryptocurrency?

Published by CryptoNinjas.net
12/15/2020
Could Anti-Trust Lawsuits Further Delay Facebook’s Launch of the Rebranded Diem Cryptocurrency?

"Facebook" by clasesdeperiodismo is licensed under CC BY-SA 2.0

Facebook has spent a lot of time in the news in December (and honestly, for the entirety of 2020). The news started with the social media giant announcing a rebranding of their planned cryptocurrency – from Libra to Diem – followed by a massive anti-trust lawsuit launched by the Federal Trade Commission and dozens of states, then another lawsuit against the new name.

The anti-trust lawsuits accuse Facebook of abusing its power in the digital marketplace and engaging in anti-competitive behaviour. The lawsuit focuses on Facebook’s monopolistic actions and the control it has over social media after its purchase of Instagram and Whatsapp. This lawsuit is not the first of its kind against Facebook, as the European Union has previously challenged its dominance in the field and its anti-competitive behaviour.

Before moving forward, it is interesting to contrast Facebook’s dominance of this digital medium to other digital ones that have emerged and reached huge popularity. One industry to contrast it with is online sports betting. The competition in online sports betting is fierce. New entrants join every year and vie for customers by offering better options, generous incentives, lower requirements on rollover betting, and a more extensive selection of markets.

Of course, this is the type of lawsuit that could take years to resolve, and Facebook does have a few arguments to make for itself. The FTC did approve Facebook purchasing Instagram and Whatsapp – which opens a slippery slope on whether, once finalized, the FTC can change its mind.

Large businesses will follow this part of the lawsuit with much interest. The chance that a court rules in favour of the FTC – meaning no sale is ever final – could have other businesses and industries throwing their support behind Facebook.

The other issue is whether the courts can deem Facebook’s actions as a true monopoly. Unlike many businesses that are either considered essential or if a purchase drives out all competition and creates only one option for buyers, people choose to use Facebook. Facebook is also countering the lawsuit, stating it welcomes regulations but believes too heavy of a hand will give competitive advantages to China.

“Stack of cryptocurrencies” by marcoverch is licensed under CC BY 2.0

Now, it leads into our original question of whether these lawsuits will have an effect on the launch of Facebook’s cryptocurrency Diem – which could release as soon as January 2021.

For starters, Facebook is already in a lawsuit over the new name of the project. The name is already taken by London fintech for their finance app DIEM.

Another rebranding (or renaming) is sure to delay the project even more – although Facebook is still waiting on approval from the Swiss markets watchdog.

The anti-trust lawsuits against Facebook are not likely to have much influence or effect on Facebook’s plans to launch a digital coin. The type of lawsuit against Facebook could take years to come to any conclusion. Microsoft faced a lawsuit of a similar nature in the late 1990s, but the results were just increased regulations and restrictions – leaving Microsoft intact.

Of course, Facebook’s plan and what the rest of the world thinks are two different things. A company under multiple lawsuits from some of the most powerful economies in the world may have a hard time convincing governing bodies to approve anything – even if their control of Instagram and Whatsapp does not have much to do with their plans to launch Diem.

The best thing to do is follow the lawsuits and regulations and see if 2021 is finally the year Facebook launches its digital coin (whatever they end up calling it).

SubscribeE-MailXFacebookWhatsappTelegramRedditLinkedin

Related News

BITmarkets – Spot, Futures, Margin Trading with 150+ Cryptocurrencies

08/28/2023
BITmarkets – Spot, Futures, Margin Trading with 150+ Cryptocurrencies

Welcome to the world of BITmarkets - a leading cryptocurrency exchange offering a wide range of trading options for both retail traders and corporate clients. In this comprehensive review, we will explore the various...

Read more

Hong Kong’s first licensed crypto exchange HashKey is now live

08/28/2023
HashKey Exchange, Hong Kong's first licensed crypto exchange is now live

HashKey Exchange, the first licensed retail virtual asset exchange registered in Hong Kong, announced its official launch today. Together with executives from the HKSAR government, top-tier banks, insurers, and Big 4 auditing firms, HashKey...

Read more

Adenasoft launches new crypto exchange white label solution: ACE

06/27/2023
Adenasoft launches new crypto exchange white label solution: ACE

Adenasoft, a South Korea-based IT/software company, has just announced the launch of ACE, their new SaaS product designed for cryptocurrency exchanges. ACE fully prepares businesses for exchange operations quickly, taking less than a month...

Read more

Maximize Your ETH Investment: The ETHphoria Vault by Pods

06/21/2023
Maximize Your ETH Investment: The ETHphoria Vault by Pods

This week, the team of Pods, a provider of structured products for crypto assets, unveiled its latest offering - the ETHphoria Vault. This innovative yield strategy is designed explicitly for ETH enthusiasts who are...

Read more
Load More
Leave Comment

Where to Exchange

Leading crypto suite in Spain & LATAM Visit
European bitcoin exchange Visit
Swap & buy 150+ cryptocurrencies Visit
First U.S. regulated BTC exchange Visit
  • Trending
  • Latest
Blockstream releases new platform for Liquid-sidechain security token issuance

Blockstream releases new platform for Liquid-sidechain security token issuance

05/15/2019
Blockstream Mining Bitcoin

Blockstream launches bitcoin mining colocation and pool services

08/08/2019
Zilliqa blockchain combines incubation programs as it announces new grant winners

Zilliqa blockchain combines incubation programs; announces new grant winners

12/03/2019
HashKey Exchange, Hong Kong's first licensed crypto exchange is now live

Hong Kong’s first licensed crypto exchange HashKey is now live

08/28/2023
BITmarkets – Spot, Futures, Margin Trading with 150+ Cryptocurrencies

BITmarkets – Spot, Futures, Margin Trading with 150+ Cryptocurrencies

08/28/2023
HashKey Exchange, Hong Kong's first licensed crypto exchange is now live

Hong Kong’s first licensed crypto exchange HashKey is now live

08/28/2023
Adenasoft launches new crypto exchange white label solution: ACE

Adenasoft launches new crypto exchange white label solution: ACE

06/27/2023
Maximize Your ETH Investment: The ETHphoria Vault by Pods

Maximize Your ETH Investment: The ETHphoria Vault by Pods

06/21/2023
  • Home
  • Directory
  • Data
  • About
  • Contact
SUBSCRIBE

© 2016 - 2024 CryptoNinjas Disclosures | Privacy Policy

  • Home
  • Crypto Links
  • Market Data
  • Blockchain Tech
  • Exchanges
  • Capital Raising
  • Vendor Technology
  • Token Offerings/Listings
  • Payments
  • Wallets
  • Bitcoin ATM Map
  • Conferences & Events
  • About
  • Contact
No Result
View All Result

© 2016 - 2024 CryptoNinjas Disclosures | Privacy Policy