Even if you are not following the tech news for some time you would now get to know that Facebook has acquired WhatsApp for 16 billion dollars and Instagram for 1 Billion dollars. The FTC reports also claim that Facebook has also tried to acquire other platforms like Twitter and even Snap, the parent company of Snapchat and Bitmoji.
Therefore, the FTC and attorney generals have filed and alleged the lawsuits. They confidently claim that this initiative of the injunction will force Facebook to divest these two major acquisitions. This will, in turn, alleviate the fear of not reaching a massive audience by increasing the number of alternatives like from one to three separate social media platforms.
These lawsuits have already started harming Facebook by pushing the stock of the company down to almost 2%.
However, the the social media giant has opposed these lawsuits. On the other hand, Facebook’s chief Counsel has provided a counter-statement, claiming that these two acquisitions are not illegal and they have already cleared the purchases. He further stated that these lawsuits are now implying that no sale is ever final for the Americans.
They have also argued that the reason behind Facebook’s acquisition of these two social platforms is solely to crush the competition that these two major social media platforms can create for Facebook. They have presented this argument with the reference of Facebook’s CEO’s statement who has once stated that it is better to buy than compete.
The FTC reports also state that by acquiring WhatsApp and Instagram Facebook has also limited their development by forcing them to stay behind the actual Facebook application. Yet, the generals and FTC are still standing firm on its decision of enforced lawsuits with a claim that it is ceasing the activity of the potential competitors in the digital market by acquiring the smaller companies.
Along with this, the FTC has also warned Facebook that it will take strict action against its strategy of imposing anti-competitive situations for the potential developers who also want to reach the top of the digital market.
The states are suing Facebook for their fear of getting behind in the digital market and instead of competing they have chosen an anti-competitive strategy that is against the FTC, as per the reports.
This post was written by Arooj Ahmed and was first posted to Digital Information World
Do you find this article helpful? Your Friend might too. So, please Share it with them using the Share button above.
Will you like to get notified when I post new updates? Then Follow me on any of my social media handles: Google News, Telegram, WhatsApp, Twitter, Facebook, Pinterest.
You can also drop your email address below if you wish to be notified by mail.