Is Facebook really going to be broken up? Facing lawsuits from 48 U.S. states and the FTC, two acquisition deals considered 'textbook monopolistic behavior.' This Wednesday, social media giant Facebook faced two antitrust lawsuits, one from the Federal Trade Commission (FTC) and the other from 48 state attorneys general. Both lawsuits revolve around the company's 2012 acquisition of Instagram and its 2014 acquisition of WhatsApp. At the time, both acquisitions were approved by regulators but have recently come under intense scrutiny. These lawsuits are demanding that the social media behemoth divest Instagram and WhatsApp.
1. The lawsuits allege that Facebook neutralized competitors before they could threaten its dominant position in social media. The suits argue that Facebook decided to buy rather than compete with Instagram and WhatsApp. Both complaints demand that Facebook 'divest assets,' meaning spinning off Instagram and WhatsApp from Facebook. House investigation leader and Representative David Cicilline stated that Facebook’s acquisitions of Instagram and WhatsApp were 'classic monopolistic behavior,' and the company should be broken up.
Additionally, Facebook may need government approval for any future mergers or acquisitions.
2.2012...