Facebook is now on the hot seat after two separate filings from the Federal Trade Commissions regarding the Antitrust Lawsuit. The company is accused of practicing anti-competitive behavior with Instagram and WhatsApp acquisition. 48 states come with FTC to push the lawsuit against the social media.
The impending case against the massive social media company, Facebook, is here, and it is not taking it easy on the company headed by CEO Mark Zuckerberg. Earlier this year, the social media company already received wind of the Antitrust case to be filed against them, and last month, they were said to be preparing a claim against the lawsuit.
FTC Antitrust Lawsuit: 48 States Push Case Against Facebook
FTC and Facebook have a long-running history regarding acquisitions and the Antitrust law, but up until Wednesday's hearing, the case became true and pushed against the social media giant. The issue is built around its significant acquisitions from the past years with the image-sharing application, Instagram, and instant messaging and calling app, WhatsApp.
According to CNBC, a total of 48 attorney generals, together with the FTC, have pushed the case against the social media giant, having two separate lawsuits against Facebook. The case built against social media revolves around its anti-competitive behavior and monopoly in the social media industry, last Wednesday, December 9.
Facebook initially denied and contradicted the case and then retained the hold over the two major applications, Instagram and WhatsApp. The social media giant acquired Instagram last 2012, while WhatsApp was acquired previous 2014.
Facebook Antitrust Lawsuit: Social Media Monopoly Among Other Cases
The lawsuit has targeted Facebook over one central case, and that is Social Media Monopoly among the entire landscape and industry. Facebook's size and its acquisitions have been deemed to be "anti-competitive" behavior that takes on the whole industry, not giving a fair chance or stakes in the country's social media landscape.
The government's stand leads to suggesting that Facebook divest its acquisitions of its two central social media platform to other companies or leave it on its own two feet. However, the company does not agree with divesting Instagram and WhatsApp and plans to fight the Antitrust case against FTC.
Notably, Facebook's stock went down by two percent last Wednesday, particularly when the case was made known to the public. Facebook's struggle to win this case has been on for years, one which they escaped and evaded before.
Facebook's Stand: It Will Not Divest IG and WhatsApp, as It Had Done Before
According to Facebook's blog post, vice president Jennifer Newstead argued that the government dropped the case before. Over the past years, the antitrust lawsuit has shown that this was initially scrapped and let Facebook keep Instagram for the years to come.
Newstead said that the most crucial fact in the case is that the acquisition was cleared years ago and that the FTC did not mention this in the 53-page complaint it presented in the court hearing. Facebook also said that it provides many ways to communicate using its products and brand, with Instagram and WhatsApp being essential parts of the social media company.
This article is owned by Tech Times
Written by Isaiah Alonzo