The Federal Trade Commission (FTC) and 40 state lawmakers in the United States filed a lawsuit against Facebook last Wednesday for maintaining a monopoly on social media. Facebook acquired Instagram and WhatsApp in 2012 and 2014, respectively. They have named this as a step taken by Facebook to prevent its threats to the market.
The FTC is in the process of issuing a permanent injunction ordering Facebook to sell both its Instagram and WhatsApp social networks. In addition, the FTC has suggested that any company that Facebook intends to make in the future should give prior notice of purchase and obtain approval.
Facebook is already being notified of a $ 10 million acquisition following an earlier order.
The FTC has made the following comments about the acquisition of Instagram by Facebook.
According to the report, Instagram, which was a threat to Facebook, was bought for $ 1 billion in April 2012 to prevent that threat, and they said that such actions would block another person from building their social network.
Similarly, Facebook used the same process to buy WhatsApp for $ 19 billion in 2014, with the FTC claiming that it was trying to maintain a monopoly on other mobile messaging services.
Facebook company response
In response to these legal actions, Facebook said that the acquisition enabled them to increase market competition and facilitate advertisers.
If Facebook is found guilty of these allegations, both WhatsApp and Instagram will have to be sold to someone else.