Facebook should get rid of Instagram and WhatsApp, according to a lawsuit filed by the US antitrust regulator.
The Federal Trade Commission (or FTC) has initiated a lawsuit for monopolistic practices against Facebook, which joins the one recently filed by New York Attorney General Laetitia James, for the same reasons.
But, unlike on other similar occasions, in which Facebook was g******g ‘only’ to pay multimillion-dollar fines, now its same business model would be at stake.
And is that the FTC requires Zuckerberg’s company, among other things, that ditch your other two popular social networks acquired in recent years: Instagram and WhatsApp. According to the director of the FTC Competition Office, Ian Conner,
“The goal is to reverse Facebook’s anti-competitive behavior and restore competition so that innovation and free enterprise can flourish.”
According to the FTC, Facebook’s conduct has made it the predominant social network, a position that last year alone generated revenue of more than $ 70 billion and profits of more than $ 18.5 billion.
Laetitia James, who acts with the backing of 47 other state attorneys general, has argued that
“For almost a decade, Facebook has used its dominance and monopoly power to crush smaller rivals and cut off competition large amounts of money to acquire potential rivals before they could threaten dominance of the company. “
Buy so they don’t compete
Such acquisitions are, of course, those of Instagram in 2012 and WhatsApp in 2014, which according to the FTC’s demand were potential rivals for Facebook until they were acquired by its parent company … extreme that Zuckerberg acknowledged in the emails revealed a few months ago during the hearing of the antitrust subcommittee of the US House of Representatives.
David Cicilline, the legislator who chaired that session, said in a statement that Facebook “is a monopoly” and that “it has violated the law, so it must be divided.”
Another example of anti-competitive behavior by Facebook is reflected in the FTC’s lawsuit: your decision to block friend search from Vine, when this service was acquired by rival Twitter.
Facebook has responded through a statement in which it claims that both acquisitions were approved by the relevant regulatory agencies, and that they try to cancel them 6-8 years after they were carried out would set a dangerous precedent.