Facebook ‘plays bad’ forcing rivals to either be acquired, or will be ‘drowned’, at risk of being ordered by the court to resell Instagram and WhatsApp
- Tram Ho
Reuters reported that the US Federal Trade Commission (FTC) is taking new steps in its antitrust case against Facebook Inc on Thursday. Specifically, the agency added more details about the allegation that this social network competes unfairly by crushing or acquiring competitors.
The FTC has once again pressed the court to force Facebook to sell Instagram and WhatsApp. Facebook bought Instagram in 2012 for $1 billion and WhatsApp in 2014 for $19 billion.
The new complaint is up to 80 pages long – significantly longer than the original complaint and includes additional data to support the FTC’s allegation that Facebook is a monopoly. The extension of the complaint alleges that Facebook dominates the US personal social networking market with more than 65% monthly active users since 2012.
The FTC accused Facebook of a ” plan to take over or drown a competitor to disrupt competition ” in a press release about its complaint.
For its part, Facebook said it will continue to fight the lawsuit.
” Unfortunately, although the court dismissed the lawsuit and concluded that there was no basis for the claim, the FTC chose to continue with this futile lawsuit, ” a Facebook spokesperson said. ” The acquisitions of Instagram and WhatsApp were reviewed and transparent by us many years ago. Also, our platform policies are legal .”
The FTC’s famous lawsuit against Facebook represents one of the most significant challenges the agency has faced a tech company in decades. The case is also being closely watched as Washington aims to reshape the massive market power of Big Tech.
” Despite leaving many customers unhappy, Facebook’s massive profits over a long period of time show that it has monopolistic power. Its personal social media rivals are virtually insurmountable. barriers to entry and challenge Facebook’s dominance ,” the revised complaint reads.
In an attempt to demonstrate Facebook’s dominance in the personal social network, the FTC’s complaint distinguishes the company from the short-video app TikTok and sites like Twitter, Reddit and Pinterest, which are said to be out of focus. Focus on connecting friends and family.
The revised complaint comes after Judge James Boasberg of the U.S. District Court for the District of Columbia said in June that the FTC’s original complaint filed in December failed to provide evidence that Facebook had monopoly power in the social network market.
Starting in 2007, Facebook invited apps to its platform with the aim of making Facebook more attractive. However, later, Facebook seemed to realize that some applications could develop into competitors and they decided to end this program in 2013. However, under pressure from the European Union, Facebook had to restore this program.
An antitrust expert said he believes the court will find it difficult to order Facebook to sell Instagram or WhatsApp because they were purchased years ago.
Seth Bloom of Bloom Strategic Counsel added: ” This is a clearer lawsuit when it comes to many details that say Facebook is dominating the social network .”
Senator Amy Klobuchar, chair of the Senate Judiciary Committee’s antitrust panel, said she was pleased to see the FTC hold Facebook accountable for a ” long history of anticompetitive conduct .”
Source : Genk