Blockchains and Cybercurrencies Challenging Anti Trust and Competition Law

11 Pages Posted: 7 Dec 2017 Last revised: 28 Mar 2018

See all articles by Stephan Breu

Stephan Breu

Johann Heinrich Pestalozzi University Inc.; Universidad Complutense de Madrid - Grupo CONCILIUM; Swiss Centre for International Humanitarian Law; Kutafin Moscow State Law University; Legal Forum Cannes

Date Written: December 1, 2017

Abstract

Blockchain technology has come to most people’s attention through Bitcoin as the leading cryptocurrency today. But the technology can be used for a lot of other applications as a way to store decentralized data and information. Blockchains are filing their records through a continuously growing number of single “blocks” which are linked and secured using cryptography. Typically, such blockchains are managed by a peer-to-peer network using a specified protocol for validating new blocks. By storing data across an international network, this new technology is operating independently of any government or central bank as it is not residing in a specific area of influence of any given regulation or jurisdiction. Also, there is the question as to which court has jurisdiction in context of blockchain disputes based on the international and anonymous structure. These systems also offer a high level of anonymity to their participants. Given these scenarios it has to be considered that blockchains with shared use of distributed ledgers by several competitors might be a considerable risk under antitrust and competition laws. To get full value for future blockchain applications, a deep cooperation and collaboration on a common platform by all participants – that often will also be competitors – will be necessary. Although collaborating to achieve an outcome more efficiently is generally not sanctioned by antitrust laws, there are still potential antitrust concerns to be considered. And finally, due to the automatic and irreversible execution of blockchain transactions, one has also to think about technical precautions for enforcing any possible court decisions. All these challenges for the future will ask for a strong self-regulation of the market participants in the digital marketplace.

Keywords: Blockchain, Cryptocurrencies, Antitrust Law, Competition Law, Distributed Ledger Technology

Suggested Citation

Breu, Stephan, Blockchains and Cybercurrencies Challenging Anti Trust and Competition Law (December 1, 2017). Available at SSRN: https://ssrn.com/abstract=3081914 or http://dx.doi.org/10.2139/ssrn.3081914

Stephan Breu (Contact Author)

Johann Heinrich Pestalozzi University Inc.

13727 SW 152 Street #753
Miami, FL 33177
United States
7865286035 (Phone)

Universidad Complutense de Madrid - Grupo CONCILIUM

Carretera de Humera s/n
Madrid, Madrid 28223
Spain

Swiss Centre for International Humanitarian Law ( email )

Seefeldstrasse 283
Zürich
Switzerland
+41-43-5005100 (Phone)

Kutafin Moscow State Law University ( email )

Sadovaya Kudrinskaya, 9
Moscow, 123995
Russia

Legal Forum Cannes ( email )

c/o Grand Hotel
La Croisette
Cannes
France

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