Facebook In Soup Again As New Antitrust Law Filed; May Need To Sell Instagram, WhatsApp

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Facebook is in trouble once again and this time, it may need to sell Instagram and WhatsApp. The US Federal Trade Commission notes that Facebook is using 'predator strategy' to establish a market dominance, which has snapped up smaller competitors and rivals. The new antitrust lawsuit notes that Facebook's monopoly needs to be snuffed out.

Facebook In Soup Again; May Need To Sell Instagram, WhatsApp

 

The US FTA has filed an antitrust lawsuit against Menlo Park, and another filed by a union between 46 states, Washington DC and Guam. A Reuters report quotes Letitia James, the New York Attorney-General, who said the antitrust lawsuit "is critically important to block this predatory acquisition of companies" and that confidence in the market should be restored." The lawsuits also note that Facebook has used its monopoly in the market to "snuff out competition at the expense of everyday users".

Facebook Antitrust Lawsuit: What Could Happen

One of the ways to break the existing monopoly is by selling Facebook-owned platforms, namely WhatsApp and Instagram. The messaging platform and the photo-based social media platform have been one of Facebook's most prized acquisitions and are popular across the globe.

Looking back, Facebook bought Instagram in 2012 for USD 1billion and purchased WhatsApp in 2014 for USD 19 billion, which were huge numbers at the time. However, since its purchase, both Instagram and WhatsApp have flourished to win a massive userbase. One can see the 'from Facebook' branding on both platforms.

What Will Facebook Do?

It looks like it's going to be a tough battle now between Facebook and FTC. Facebook responded to the antitrust lawsuit saying that the actions "revisionist history" for picking on successful businesses. Moreover, Facebook reminded that the FTC has already confirmed the deals back in the day without whose approval the deal wouldn't have come through. Additionally, the social media giant notes that people using either of the platforms are always free to move to another product or service at any time they choose.

 

But given the popularity of Facebook and its subsidiaries, which other alternative platforms would people choose to go to? And this is what the new FTC antitrust lawsuit is questioning, which will continue in the court in the coming days.

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