“Personal social networking is central to the lives of millions of Americans,” said Ian Conner, director of the FTC’s Bureau of Competition, on its website. However, as Facebook’s reputation continues to take hits, and lawmakers tire of the antics of big tech companies, now seems an ideal time to pursue action against one of the biggest companies in Silicon Valley. antitrust enforcers reviewed the Instagram and WhatsApp deals in 20, respectively, and made no attempts to stop them from happening. “It is better to buy than compete,” wrote Mark Zuckerberg in a 2008 email, according to the FTC lawsuit. Its decision to purchase, rather than compete with, WhatsApp in February 2014, for $19 billion-is further evidence of monopolistic behavior, the complaint alleges, as the purchase neutralized the competition and ensured that future threats would have a harder time gaining market share. The complaint also alleges that Facebook initially tried to compete with Instagram before choosing to purchase it instead-for $1 billion in April 2012.Īccording to the complaint, it was also around this time that Facebook recognized “over-the-top” mobile messaging apps as another serious threat to its power. Its complaint alleges monopolistic behavior, citing that Facebook executives viewed Instagram as a threat soon after the platform appeared on the scene, at a time when consumers were switching from desktop computers to smartphones and were growing increasingly interested in photo sharing. ![]() It’s not solely Facebook’s acquisition of Instagram and WhatsApp that has the FTC putting its lawyers to work. If the FTC’s injunction is granted in court, Facebook may have to divest of its assets-Instagram and WhatsApp included-remove its anticompetitive conditions on software developers, and seek prior approval for future mergers and acquisitions. This alleged monopolization has also resulted in massive profits for the company Facebook generated revenues of more than $70 billion and profits of more than $18.5 billion in the last year alone. ![]() The FTC alleges that such conduct was part of Facebook’s strategy to eliminate threats to its monopoly, an illegal act that harms competition, deprives advertisers of the benefits of competition, and leaves consumers with fewer choices for social networking. ![]() The Federal Trade Commission announced last week that it is suing the tech giant for illegally maintaining a personal social networking monopoly, citing years of anticompetitive conduct, including the company’s 2012 acquisition of Instagram, its 2014 acquisition of WhatsApp, and the imposition of anticompetitive conditions on software developers. It has not been a great year for Facebook-or for its reputation, at least.
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