Case against US Federal Trade Commission Method Washington begins in DC on Monday, as the Tech Device fights to avoid Instagram and WhatsApp spin -off. FTC alleges that Meta illegally obtained both startups in an attempt to get Press the competition.
Meta (then Facebook) bought a photo -sharing startup Instagram for $ 1 billion in 2012. About two years later, the company snatched the chat tool WhatsApp for about $ 22 billion.
The FTC, one of the country’s anti -trust enforcement agencies, wants Judge James Bosburg to blame the Tech Dev for performing mega deals. Maintain a social media monopoly illegally. He has demanded Bosburg to restore the competition by ordering Metaa Sell its valuable assets. Victory for the government can prevent larger tech companies from getting startup in the future, and venture can reduce an important means of innovation and investment return for investors.
The preliminary trial can last for 37 days wrapped up in early July. If needed, a trial will be held next year to make a decision on the fine. It may take extra years to resolve the appeals of any decisions. So WhatsApp and Instagram are not being sold at any time. But the possibility of losing two valuable properties helps explain why Mark Zuckerberg Is allegedly President Donald Trump and White House officials are looking for a last -minute deal to avoid fighting in court. So far, those efforts appear to be unsuccessful.
What will be expected here when the trial begins?
What is the FTC discussing?
First, the FTC must prove that Facebook has a long monopoly on “providing personal social networking services in the United States”. According to her legal fodder. Category Facebook is reportedly known as Snap Chat and Services Invisible ManufactureBut especially YouTube, ticket, and other platforms have not been excluded, which FTC believes are more to watch videos by creators rather than following family and friends. From 2012 to 2020, Facebook commanded more than 80 % of consumers every year in this limited market.
Second, it has to show the competition that damages the achievement of the social networking market. According to the trial, when the Instagram and WhatsApp Deal talks began, Facebook feared the threats that app start -up had presented its monopoly. Referring to emails between Zuckerberg and other executives of the companyLike Zuckerberg, once writing “is better than competing” – FTC has alleged that the company has decided to buy newborn rivals to get more time to detect its app development strategy. The litigation alleges that “unable to maintain its monopoly through a lot of competition, the company’s executives focused on buying new innovators and focusing on the danger, where Facebook failed.”
FTC claims After buying Instagram and WhatsApp, Facebook had fewer apps on its heels and escaped from providing low data privacy and providing small services to advertisers. The FTC says the deals also sent a message to the rivals: companies trying to defeat Facebook freely will not be able to remove too. According to the legalization, it was further contested.
What does FTC want?
The Commission would like to restore the competition, possibly through the Meta Divist Instagram and the WhatsApp. It can be disastrous for the meta, which relies on Instagram for a significant part of its advertisement income.An estimated 50 % or more in the US. Other measures may include preventing Meta from completing similar deals in the future.
What is the defense of Meta?
The main argument of the company is that the Commission is explaining the market very easily. Meta argues that many social apps, including Teltok and YouTube, are many competitors of Facebook. The company says add them to the mix, and Facebook can no longer be seen as a monopoly.
If this argument does not lead to a Meta -e -Meta, its second important dispute is that the FTC is unable to show that consumers and advertisers are worse because of the ownership of the Instagram and WhatsApp company. Meta has said that apps are not as successful as they are still responsible today. “The FTC must prove that consumers have more (or better) options soon without acquiring.” Was written in judicial papers last week. “Meta respectfully says that the FTC will not be able to provide any evidence to fulfill its burden.”