DUBLIN: It is reported that Facebook is preparing to sell Instagram and WhatsApp. The move comes in the wake of a series of lawsuits filed against Facebook by US federal and state competition enforcers alleging that the social media giant has abused its dominance by acquiring messaging services such as Instagram and WhatsApp.
The move against Facebook is expected to be part of the Federal Trade Commission’s announcement earlier this year that it will review acquisitions made by five big tech companies over the past decade. The consumer protection agency says there have been complaints since 2010 against tech platforms that dominate key economic sectors. It also announced that it would review deals with Amazon, Apple, Facebook, Microsoft and Google parent Alphabet.
Special suits submitted by the FTC and the State Bureau of Staff are asking Facebook to remove Instagram and WhatsApp. WhatsApp and Instagram have millions of users, and Facebook has made them part of the ‘Family’ app.
State Antitrust Enforcement from 48 US states and territories has taken special legal action against Facebook.
“Facebook’s actions to entrench and maintain its monopoly deny consumers the benefits of competition,” said Ian Conner, director of the FTC’s Bureau of Competition. “Our aim is to roll back Facebook’s anticompetitive conduct and restore competition so that innovation and free competition can thrive,” he added.
“For nearly a decade, Facebook has used its dominance and monopoly power to crush smaller rivals and snuff out competition, all at the expense of everyday users,” said New York state Attorney General Letitia James, who leads the coalition. “Facebook used its power to suppress competition”. Letitia James also alleges that Facebook is making billions by “converting personal data into a cash cow”. Facebook acquired the messaging apps Instagram in 2012 and WhatsApp in 2014. It is alleged in the cases that it has been trying to block the competition since then.
The FTC says it is fighting a lawsuit to force Facebook to divest the apps that have integrated with its technology, which has become a major component of the California giant. This case involves a large chunk of data collected not only from Facebook, but also from about three billion users worldwide. “Facebook has been spending its time surveilling users’ personal information and profiting from it,” Ms James said.
The US Justice Department, a partner in FTC’s antitrust enforcement, filed a lawsuit against Google parent Alphabet in October. The lawsuit alleges that the Silicon Valley giant illegally monopolized online search and advertising. Eleven US states have joined that case.
Facebook says:
Facebook responded that it would provide a detailed response after reviewing the cases. “Years after the FTC cleared our acquisitions, the government now wants a do-over with no regard for the impact that precedent would have on the broader business community or the people who choose our products every day,” it added.