TechDigits

Tech news
Thursday, Apr 25, 2024

The US Government Says Facebook Needs To Sell Instagram And WhatsApp

The US Government Says Facebook Needs To Sell Instagram And WhatsApp

Forty-eight attorneys general and the Federal Trade Commission filed suit against the company Wednesday.

Facebook has used illegal monopoly power and an “unlawful scheme” to stifle competition, degrade personal privacy, and crush rivals, according to antitrust lawsuits filed Wednesday by the Federal Trade Commission and attorneys general from 46 states and two territories.

“For nearly a decade, Facebook has used its dominance and monopoly power to crush smaller rivals and snuff out competition, all at the expense of everyday users,” New York Attorney General Letitia James said at a press conference announcing the action. “By using its vast troves of data and money, Facebook has squashed or hindered what the company perceived as potential threats.”

James said the company’s “unlawful scheme” has reduced choices for consumers and “degraded privacy protections for millions of Americans.”

The long-anticipated suits allege that the social networking behemoth has abused its market dominance in order to acquire or kill competitors, abuse the privacy of Americans, and punish rivals who refused to be bought out. The suits cite Facebook’s 2012 acquisition of Instagram and its 2014 purchase of WhatsApp as key examples of its alleged anticompetitive behavior.

The suits ask the courts to permanently stop Facebook from continuing its allegedly illegal behavior, to curtail major new acquisitions by the social network, and to potentially force it to divest its major assets, including Instagram and WhatsApp. The state attorneys general asked the courts to require Facebook to seek their approval for acquisitions valued at or above $10 million.

Facebook’s actions to entrench and maintain its monopoly deny consumers the benefits of competition,” said Ian Conner, director of the FTC’s Bureau of Competition, in a statement. “Our aim is to roll back Facebook’s anticompetitive conduct and restore competition so that innovation and free competition can thrive.”

In a statement, Jennifer Newstead, Facebook's vice president and general counsel, called the lawsuits' allegations "revisionist history."

"Instagram and WhatsApp became the incredible products they are today because Facebook invested billions of dollars, and years of innovation and expertise, to develop new features and better experiences for the millions who enjoy those products," she said. "The most important fact in this case, which the Commission does not mention in its 53-page complaint, is that it cleared these acquisitions years ago. The government now wants a do-over, sending a chilling warning to American business that no sale is ever final."

Facebook previously defended its actions and acquisitions after the House Antitrust Subcommittee released a report in October that said it and other tech giants have abused their monopoly power.

During public hearings, the subcommittee released emails from Facebook founder and CEO Mark Zuckerberg in which he told a company executive that acquiring Instagram would neutralize a competitor.

“These businesses are nascent but the networks are established, the brands are already meaningful, and if they grow to a large scale they could be very disruptive to us,” Zuckerberg wrote to David Ebersman, then the company's CFO, in early 2012.

Forty-five minutes after sending his email, Zuckerberg attempted to walk back his comments. “I didn’t mean to imply that we’d be buying them to prevent them from competing with us in any way,” he wrote in a follow-up message.

On Wednesday, news of the antitrust lawsuits filtered to employees via articles posted by their colleagues to the company's internal message board. It took several hours after the news broke for Newstead and Zuckerberg to make internal announcements, with Facebook's CEO saying he was "limited in discussing specifics of these cases."

"Overall, we disagree with the government's allegations and we plan to fight this in court," Zuckerberg wrote. He noted that Facebook's competitors including Google, Twitter, Snapchat, TikTok, and others have apps with "hundreds of millions or billions of users."

"Our acquisitions have been good for competition, good for advertisers, and good for people," Newstead wrote in her post to employees.

Inside Facebook, discussion was muted as only a handful of employees commented on posts about the news. Later, company leaders disabled comments on posts discussing the antitrust laswuits, including those from Zuckerberg and Newstead, as part of an October directive from Facebook's chief.

“Given that, you know, anything that any of you say internally is, of course, available to be subpoenaed or used in any of these investigations, I just think we should make sure that people aren't just, you know, mouthing off about this and saying things that may reflect inaccurate data, or generally just are kind of incomplete,” he said in a company-wide meeting in October that was previously reported by BuzzFeed News. “You shouldn't be emailing about these things and you shouldn't really be discussing this in non-privileged forums across the company.”

Newsletter

Related Articles

TechDigits
0:00
0:00
Close
FTX's Bankman-Fried headed for jail after judge revokes bail
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Musk announces Twitter name and logo change to X.com
The future of sports
TikTok Takes On Spotify And Apple, Launches Own Music Service
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
UK Crypto and Stablecoin Regulations Become Law as Royal Assent is Granted
A Delaware city wants to let businesses vote in its elections
Alef Aeronautics Achieves Historic Milestone with Flight Certification for World's First Flying Car
Google Blocked Access to Canadian News in Response to New Legislation
French Politicians Advocate for Pan-European Regulation on Social Media Influencers
Melinda French Gates Advocates for Increased Female Representation in AI to Prevent Bias
Snapchat+ gains 4 million paying subscribers in its first year
Apple Makes History as the First Public Company Valued at $3 Trillion
Elon Musk Implements Twitter Limits to Tackle Data Scraping, but Faces Criticism for Technical Misunderstanding
EU and UK's Slow Electric Vehicle Adoption Raises Questions About the Transition to Green Mobility
Top Companies Express Concerns Over Europe's Proposed AI Law, Citing Competitiveness and Investment Risks
Meta Unveils Insights on AI Usage in Facebook and Instagram, Amid Growing Calls for Transparency
Crypto Scams Against Seniors Soar by 78% in 2022, Experts Urge Vigilance
The End of an Era: National Geographic Dismisses Last of Its Staff Writers
Shield Your Wallet: The Perils of Wireless Credit Card Theft
Harvard Scientist Who Studies Honesty Accused Of Data Fraud, Put On Leave
Putting an End to the Subscription Snare: The Battle Against Unwitting Commitments
The Legal Perils of AI: Lawyer Faces Sanctions for Relying on Fictional Cases Generated by Chatbot
ChatGPT’s "Grandma Exploit": Ingenious Hack Exposes Loophole in AI, Generates Free Software Codes
The Disney Downturn: A Near Billion-Dollar Box Office Blow for the House of Mouse
A Digital Showdown: Canada Challenges Tech Giants with The Online News Act, Meta Strikes Back
Distress in the Depths: Submersible and Passengers Missing in Titanic Wreckage Expedition
Mark Zuckerberg stealing another idea: Twitter
European Union's AI Regulations Risk Self-Sabotage, Cautions smart and brave Venture Capitalist Joe Lonsdale
Nvidia GPUs are so hard to get that rich venture capitalists are buying them for the startups they invest in
Chinese car exports surge
Reddit Blackout: Thousands of Communities Protest "Ludicrous" Pricing Changes
Nvidia Joins Tech Giants as First Chipmaker to Reach $1 Trillion Valuation
AI ‘extinction’ should be same priority as nuclear war – experts
×