Facebook Antitrust Case
The U.S. Competition Commission (FTC) and prosecutors representing 48 states and territories in the country filed a lawsuit against Facebook Wednesday claiming that the social media giant abused its dominant position with its large acquisitions to neutralize competition.
The teacher who spent his last hours of life qualifying exams "Ourgoal is to reverse Facebook's anti-competitive behavior and restore competition so that innovation and free competition can thrive." In particular, the authorities blame Facebook for the acquisitions of the Instagram app, in 2012 for $1 billion, and the WhatsApp messaging service, in 2014 for $22 billion.
They also criticize the conditions imposed by Facebook on software developers. "Facebook's actions to strengthen and maintain its monopoly deny consumers the benefits of competition,"said Ian Conner, director of the FTC's Competition Bureau. "Our goal is to reverse Facebook's anti-competitive behavior and restore competition so that innovation and free competition can thrive."
facebook in trouble
The FTC is asking the courts to eventually force Facebook to resell Instagram and WhatsApp. The agency also wants the group led by Mark Zuckerberg to stop forcing developers to accept certain conditions and ask for the green light for any acquisition operation. Prosecutors, for their part, claim to be notified of any acquisition of more than $10 million that the social network would like to make.
"Using the vast resources at its disposal in terms of data and money, Facebook has crushed or hindered what the company saw as potential threats," New York State Attorney General Letitia James said at a press conference.
In doing so, the group "reduces consumer choices, stifies innovation, degrades the privacy protection of millions of Americans," he said. The world's leading social network has consistently rejected accusations of monopoly, arguing that consumers have many choices on how to interact online.
The lawsuit presages a fierce court battle that seeks to force Facebook to get rid of apps that have become an increasingly important element of the Californian giant's business model and are integrated into its technology.
Facebook said it will deliver a detailed response after reviewing the case, but warned, "Years after the FTC authorized our acquisitions, the government now wants a re-review regardless of the impact the precedent would have on the broader business community or the people who choose our products every day."