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The Federal Trade Commission’s FTC announced on December 9, 2020 (local time) that it has sued Facebook for violating the antitrust law. The FTC is demanding the sale of these services, claiming that the acquisition of Instagram or WhatsApp is anti-competitive, according to Facebook. In addition, following the FTC, the attorney general of 48 states is demanding the same reason.
On December 9, the FTC announced that it had sued Facebook for violating the antitrust law. In a statement, the FTC used an organizational strategy to eliminate threats from monopolizing the market, such as Facebook acquired the rising rival Instagram in 2012 and the messaging app WhatsApp in 2014, and imposing anti-competitive conditions on software developers. He said he had been doing it. It was accused of undermining competition, giving consumers no choice, and taking advantage of the competition from advertisers as well.
In the U.S., the view that major IT companies monopolize the market and hinder healthy competition, held a hearing in the US House Judiciary Committee Antitrust Subcommittee in July 2020 and summoned Facebook CEO Mark Zuckerberg. In addition, the question-and-answer at this time revealed the existence of an internal document indicating that the Instagram takeover was aimed at neutralizing competitors, which was controversial.
The FTC also cited Facebook’s blocking access to the Facebook API on Twitter’s video-sharing service Vine, accusing Facebook of imposing anti-competitive conditions on software developers for years.
As a way to correct such antitrust violations, the FTC banned the sale of assets including Instagram and WhatsApp against Facebook, imposing anti-competitive conditions to software developers, and requesting approval by notifying the FTC in advance of future mergers and acquisitions. Demanded.
The FTC said that personal use of social networks in lawsuits has become the center of life for many Americans. Therefore, Facebook can say that the act of maintaining a monopoly is that consumers deny the competitive advantage. It said that it will correct competitive behavior to restore competitiveness and promote innovation and free competition.
Apart from the FTC, 46 states, including New York State, and 48 attorney generals in Colombia and 2 Guam filed a complaint against Facebook for the same reason as the FTC. They pointed out that Facebook has used its strengths and monopoly power for nearly a decade to crush small competitors and cover up competition. In response to this move, Facebook said that both Instagram and WhatsApp acquisitions were reviewed by regulatory authorities through their official blog. They said they had approved the transaction. The European Commission also rebutted that it reviewed transactions on WhatsApp in 2014 and judged that there was no risk of compromising competition in any potential market.
Moreover, Facebook has been developing business in a fiercely competitive environment and continues to do so. The acquisition of other companies of the company was also good for advertisers and people from a competitive point of view. Facebook, Instagram, and WhatsApp united to provide excellent service. He said he was convinced that evidence that it was competing in the market appeared at the trial.
In response, reports pointed out that it has illegally monopolized the search and online advertising markets, and is the second step the US government is taking to curb big tech after the Justice Department filed a lawsuit against Google in October 2020. Related information can be found here .
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