The Federal Trade Commission and 48 State attorney general’s are seeking to undo Facebook’s acquisition of Instagram and WhatsApp…
Reports of the federal government and a majority of state attorney generals taking antitrust action against the world’s largest social network have now been confirmed. The United States Federal Trade Commission, along with 48 states and territories, are seeking to break up Facebook’s dominance in the social media sphere. The legal actions center around anti-competitive practices, alleged by federal and local governments.
FTC, State Governments, Seek to Break Up Facebook from Instagram and WhatsApp
Facebook first acquired Instagram back in 2012 for $1 billion. Then, and 2014, acquired WhatsApp for $16 billion. The governments’ case features internal emails and other documents, citing direct sentiments from Facebook’s executives. One such 2008 email by CEO Mark Zuckerberg states the social network believes that it was “better to buy than compete.”
However, Facebook’s lawyers argue that neither Instagram nor WhatsApp would have risen to such immense popularity, had it not been for Facebook’s billions of dollars of investment and innovation. Furthermore, the federal government gave its approval of both acquisitions, and therefore should not now be able to reverse its decision simply because of their subsequent successes.