WhatsApp, Instagram: US demands Facebook sell two apps

On December 9, 2020, the FTC (Federal Trade Commission), the French equivalent of fraud prevention, and 46 American states filed two complaints against Facebook. The complaints targeted Mark Zuckerberg’s social networkAbuse of dominant position and illegal monopoly. “The company has illegally maintained its monopoly on personal social networking through years of anti-competitive behavior.” He blames the FTC in a statement on his website.

The FTC and a coalition of US state attorneys general are demanding that Facebook divest itself of WhatsApp and Instagram. The California social network would knowingly stifle competition by purchasing the two apps for several billion dollars. Facebook launches systematic strategy to eliminate threats to its monopoly ” Estimates at the FTC. Under these circumstances, the federal body makes a request. cancellation of two payments Through a permanent injunction in federal court. As a reminder, Facebook bought WhatsApp for $16 billion in 2014. Two years ago, the group bought Instagram for $1 billion.

Towards the breakup of Facebook?

“Facebook’s actions to entrench and maintain its monopoly deprive consumers of the benefits of competition. Our goal is to undo Facebook’s anti-competitive behavior and restore competition so innovation and free competition can thrive. FTC official Ian Conner explains. The 46 American states that participated in the action believe that: “Facebook has used its vast resources in terms of data and money to crush or block what the company sees as potential threats.

The complaint also accuses Facebook of prohibiting developers from using its APIs. develop concurrent functions. That’s why the FTC wants the social network to stop imposing”“anti-competitive conditions” to the developers who rely on their services.”Facebook has made its APIs accessible to third-party applications, provided they refrain from developing competing features and from linking to or promoting other social networks. Specifically, Facebook blocks developers from implementing tools that allow content to be shared with services owned by rivals, such as Twitter, the FTC details.

Concretely, the complaint formulates the first step in the liquidation of the company. The question of dismantling GAFAM (Google, Facebook, Amazon, Microsoft and Apple) has been discussed in public for several months. Many elected Democrats are calling for the immediate liquidation of digital companies that have become too powerful. This policy, inherited from the beginning of the last century in the USA, aims to break the activities of companies that have become monopolies in a sector.

Coalition demands Facebook investigates Green light from authorities for any future takeover operationsBut the FTC officially authorized the WhatsApp takeover in 2014 and made sure that didn’t happen”found a risk of harming competition”. Before Facebook could buy the messaging app, it had to prove that the purchase did not compromise user data or constitute an anti-competitive practice. Six years after giving its approval, the federal body backtracked, finding that the social network had knowingly concealed its true intentions.

Facebook refuses to split

Facebook responded quickly to the complaint. “Years after the FTC approved our acquisitions, the government is now demanding a complete overhaul without considering the impact this precedent will have on the broader business community or the people who choose our products every day.” He covers Mark Zuckerberg’s social network in a lengthy press release.

A few years after the acquisitions, the situation is very Facebook’s split of WhatsApp and Instagram services is complicated from its own solutions. This year, the group launched the merger of WhatsApp, Instagram and Messenger, with the aim of allowing Internet users to communicate without switching applications.

Under these circumstances, the social network absolutely refuses to consider a split and is blaming the FTC for the separation. “revisionist history”. Firm accuses US regulator of demanding no overhaul of its services “Consider established laws or their implications for innovation and investment”. Facebook has announced its intention to defend its interests in federal court.