New US lawsuits could see Facebook selling off Instagram and WhatsApp
Category: #technology |   By Saipriya Iyer |   Date: 2020-12-11  | 
  • Share
  • Twitter
  • Facebook
  • LinkedIn

New US lawsuits could see Facebook selling off Instagram and WhatsApp

Silicon Valley giant, Facebook could likely be forced to divest and sell off its prized assets, Instagram and WhatsApp after United States Federal Trade Commission (FTC) as well as nearly all U.S. states filed lawsuits against the company, alleging that it utilized a "buy or bury" approach to take on rivals and also keep some of its smaller business competitors at bay.

Through the filing of the two lawsuits on December 9th, Facebook became the second large tech firm to face a significant legal challenge in 2020 after U.S. Justice Department filed a lawsuit against Google in October, alleging that $1 trillion firm used its market power to keep its rivals in check.

The new lawsuits emphasize the rising bipartisan consensus in Washington to hold the country’s Big Tech accountable for their business practices. This also marks a rare occurrence of agreement between two opposing parties; the Democrats and the Trump administration, with some even calling for breaking up both Facebook and Google.

On Wednesday, the complaints accused Facebook of acquiring rivals, specifically focusing upon its past acquisitions of online messaging app WhatsApp in a $19 billion deal back in 2014 and photo-sharing platform Instagram in a $1 billion deal back in 2012.

State and federal regulators claimed that the acquisitions need to be unwound; in a move that is expected to kick off a long legal battle as both deals were essentially cleared by the FTC years earlier.

General counsel of Facebook, Jennifer Newstead, stated that the new lawsuits are revisionist history, adding that antitrust laws have not been introduced to punish successful enterprises. Instagram and WhatsApp have attained prosperity after Facebook invested several billion dollars to grow the apps.

Newstead further added that now the government wants a do-over, which sends a chilling warning to several American business that a deal is ever final.

Source credit: https://www.channelnewsasia.com/news/business/facebook-lawsuit-instagram-whatsapp-antitrust-social-media-13739262

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Saipriya Iyer    

Saipriya Iyer

A content developer by choice, Saipriya Iyer holds a rich experience portfolio of more than five years in the content creation domain. Equipped with substantial expertise across the business, technology, and finance domains, Saipriya currently pens down insightful art...

Read More

More News By Saipriya Iyer

InMobi’s Glance secures USD 145 million from Google and Mithril Capital
InMobi’s Glance secures USD 145 million from Google and Mithril Capital
By Saipriya Iyer

The newly secured funds have allowed Glance to reach a valuation of around USD 1 billion. Glance also operates a popular video-sharing social media platform Roposo. Glance, one of the leading mobile lock screen platforms, recently announced to h...

Strict regulatory standards to drive future developments in aircraft lightning protection industry
Strict regulatory standards to drive future developments in aircraft lightning protection industry
By Saipriya Iyer

The global aircraft lightning protection industry is set to witness some interesting developments in the future, driven by the need for robust and more durable carriers for commercial and military purposes. According to the Federal Aviation Administ...

Facebook to move U.K. users to California unit to avoid EU regulations
Facebook to move U.K. users to California unit to avoid EU regulations
By Saipriya Iyer

In a bid to circumvent the EU (European Union) privacy guidelines, American social networking giant Facebook Inc. is reportedly planning to shift all U.K. users to its California unit. The move will also void British users from their existing relatio...