These are difficult times for Facebook. The Mark Zuckerberg-led global giant could be forced to sell WhatsApp and Instagram following the lawsuit filed by the US lawsuit United States Federal Trade Commission, which accuses the company of having a monopoly. Attorneys general from 48 states across the country have also joined the lawsuit.
The prosecution, which is headed by Letitia James, Attorney General of New York, has as its central axis the most important acquisitions by Facebook in recent years, the messaging service WhatsApp and the social network Instagram. The complaint alleges that the social media giant committed an unlawful act by completely absorbing its competition in an important segment of your company.
“For nearly a decade, Facebook has used its dominance and monopoly power to crush smaller competitors and eliminate competition, all at the expense of everyday users,” argues James in a media appearance. In this sense, the Attorney General considers that the acquisitions of WhatsApp and Instagram were aimed solely at eliminating competition.
The demand prompted 48 United States prosecutors to demand full detailed information on every Facebook acquisition or merger transaction valued at more than $10 million. In this sense, the company of Mark Zuckerberg should be remembered paid about 22,000 million for WhatsApp and about 1,000 for Instagram.
News of the lawsuit came just months after the US Department of Justice sued Alphabet, Google’s parent company, for monopolizing the Internet search engine market. This case had the personal involvement of Donald Trump, and the position of the new President of the United States, Joe Biden, is still unknown.
Facebook’s Response to the Lawsuit
Facebook wanted to respond to the United States Federal Trade Commission’s lawsuit with a statement, although it has not yet wet its position. “We are reviewing the complaints and will have more to say soon. Years after the FTC approved our acquisitions, the government now wants to review them without considering the impact this precedent would have on the broader business community or the people who choose our products every day.
The origin of the lawsuit against Facebook, like the case against Google, has its starting point in the investigation of the Judiciary Committee of the United States House of Representatives, the concluded by indicting the country’s four major tech companies -Amazon, Apple, Google and Facebook themselves- “Amassing too much powerand that power must be controlled and subject to proper oversight and application.”
Now facing the allegations in court, the Mark Zuckerberg-led company faces a very complicated situation that could significantly reduce its stake in two of its major businesses. After the ruling, Facebook may have to sell all or part of its stakes in WhatsApp and Instagram.