Facebook could sell its previously acquired WhatsApp and Instagram platforms because of a lawsuit filed by the US Federal Trade Commission (FTC) and nearly all states are against the social media giant.
What the plaintiffs are saying is that Facebook’s strategic acquisitions directly violate the rules of competition.
“For nearly the past decade, Facebook has used its dominance and monopoly in the media to crush smaller rivals in the space. It also claims that Facebook stifles competition; all at the expense of ordinary users.”
New York Attorney General Letitia James said on behalf of the coalition of 46 states.
You remember that Facebook’s acquisition of Instagram in 2012 was worth over $1 billion in the year 2012, and for acquiring WhatsApp it was a deal worth almost $19 billion in the year 2014.
Facebook’s general counsel Jennifer Newstead has already called the lawsuits “revisionist history.” If you ask me, it’s not enough. Facebook could sell Whatsapp and Instagram die to pressure.
She also said there are no antitrust laws to punish “successful companies”. According also she said, WhatsApp and Instagram have been successful after Facebook has invested billions of dollars in the development of their respective applications.
When we discuss antitrust issues, you definitely think of Apple, Facebook, Google one way or another. However, it is interesting that Apple is criticizing Facebook for ignoring privacy.
In the letter, Apple defended the delay in implementing an iPhone feature that requires apps to obtain explicit permission from users before tracking users for advertising purposes.
This feature was available in September as part of the iOS 14 operating system. However, it will not be mandatory for all applications until early 2021.
Previously, several developers, including Facebook, said that this change would harm their business.