FTC Accuses Facebook of Social Media Monopoly, Calls for Divestiture of Instagram and WhatsApp

The United States Federal Trade Commission today teamed up 46 states, the District of Columbia, and the territory of Guam to sue Facebook for maintaining an illegal social networking monopoly through years of anticompetitive conduct.

facebook
Facebook is accused of engaging in a "systematic strategy" to eliminate threats to its monopoly, which included the 2012 acquisition of Instagram and the 2014 acquisition of WhatsApp. Facebook's actions have harmed competition, left consumers with few choices for personal social networking, and deprived advertisers of the benefits of competition.

The FTC is aiming for a permanent injunction that would require the divestitures of assets that include Instagram and WhatsApp, which would mean Facebook would be forced to sell the two social networks. Facebook would also be prohibited from imposing anticompetitive conditions on software developers and it would need government approval for future mergers and acquisitions.

"Personal social networking is central to the lives of millions of Americans," said Ian Conner, Director of the FTC's Bureau of Competition. "Facebook's actions to entrench and maintain its monopoly deny consumers the benefits of competition. Our aim is to roll back Facebook's anticompetitive conduct and restore competition so that innovation and free competition can thrive."

The complaint says that while Facebook initially attempted to compete with Instagram, it ultimately chose to purchase Instagram instead, neutralizing the threat and making it hard for another social networking competitor to gain scale. Facebook's leadership also allegedly understood and feared that a successful mobile messaging app like WhatsApp could enter the social networking market, which is why it pursued the WhatsApp acquisition.

According to the FTC, Facebook's dominance in social networking has provided it with "staggering profits," including revenue of more than $70 billion and profits of more than $18.5 billion in 2019. Facebook has been under investigation for more than a year, with that investigation culminating in the lawsuits filed today.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Top Rated Comments

ArPe Avatar
30 months ago
Yes, break them.

Break them into pieces.

This is the only tech company that needs an ass kicking.
Score: 74 Votes (Like | Disagree)
JimmyBanks6 Avatar
30 months ago
Huge!!!

I hope it succeeds
Score: 33 Votes (Like | Disagree)
az431 Avatar
30 months ago
This is the only antitrust lawsuit with legs. I don't see FaceBook winning this one.
Score: 31 Votes (Like | Disagree)
dannyyankou Avatar
30 months ago
Finally something bipartisan.

By the way, 48 states sued Facebook, not 45.
Score: 27 Votes (Like | Disagree)
hasanahmad Avatar
30 months ago
Now we see why Facebook forced WhatsApp to do the why aren’t Apple apps listed with privacy Labels In order to create a distraction from this. It failed . Especially because Apple now says WhatsApp is right we will now
Score: 19 Votes (Like | Disagree)
rgeneral Avatar
30 months ago
Finally. IG goes separate company. in 5 years, it buys Facebook :)
Score: 13 Votes (Like | Disagree)

Popular Stories

iPhone 15 Pro Buttons CAD Leak

iPhone 15 Pro Leak Reveals Unified Volume Button and Mute Button

Monday March 20, 2023 8:33 am PDT by
As previously rumored, the next-generation iPhone 15 Pro and iPhone 15 Pro Max will feature a unified volume button and a mute button, according to leaked CAD images shared in a video on the Chinese version of TikTok and posted to Twitter by ShrimpApplePro. Instead of separate buttons for volume up and volume down, the iPhone 15 Pro models are expected to have a single elongated button for...
iOS 16

iOS 16.4 for iPhone Nearing Launch With These 5 New Features

Monday March 20, 2023 11:50 am PDT by
Apple says iOS 16.4 is coming in the spring, which began this week. In his Sunday newsletter, Bloomberg's Mark Gurman said the update should be released "in the next three weeks or so," meaning a public release is likely in late March or early April. iOS 16.4 remains in beta testing and introduces a handful of new features and changes for the iPhone. Below, we have recapped five new features ...
original iphone auction

Factory-Sealed Original iPhone Sells for $55,000 at Auction

Friday March 17, 2023 1:08 pm PDT by
A first-generation iPhone still sealed inside its box sold for $54,904 at auction, which is more than $54,000 over the original $599 price tag of the device when it was released in 2007. The original iPhone was put up for sale by RR Auction on behalf of a former Apple employee who purchased it back when it first came out. Back in February, an original, sealed iPhone sold for over $63,000,...
voice isolation

iOS 16.4 Adds Voice Isolation for Cellular Phone Calls

Tuesday March 21, 2023 11:01 am PDT by
The iOS 16.4 update that is set to be released to the public in the near future includes voice isolation for cellular calls, according to notes that Apple shared today. Apple says that Voice Isolation will prioritize your voice and block out the ambient noise around you, making for clearer phone calls where you can better hear the person you're chatting with and vice versa. Voice...
iPhone 12 Pro vs iPhone 15 Pro Feature

iPhone 12 Pro vs. 15 Pro: New Features to Expect if You've Waited to Upgrade

Friday March 17, 2023 10:29 am PDT by
While year-over-year iPhone upgrades are not always groundbreaking, new features can begin to stack up over multiple generations. For example, the iPhone 15 Pro will be a notable upgrade for those who still have a three-year-old iPhone 12 Pro. If you are still using an iPhone 12 Pro and are considering upgrading to the iPhone 15 Pro when it launches later this year, we have put together a...
top stories 18mar2023

Top Stories: iPhone 15 Pro Pricing, New iOS 16.4 Beta, Siri vs. ChatGPT, and More

Saturday March 18, 2023 6:00 am PDT by
Apple's high-end iPhone models have started at $999 in the U.S. since they first launched back in 2017 with the iPhone X, but could this finally be the year that starting price sees an increase? This week also saw some more rumors about Apple's upcoming headset and the company's explorations in the booming AI industry as well as the release of a new round of beta updates, so read on for all...
smart monitor m8 samsung

Deals: Samsung's iMac-Like Smart Monitor M8 Drops to Lowest Price of Year So Far With $250 Discount

Monday March 20, 2023 8:27 am PDT by
Samsung today kicked off a special "Discover Samsung" event, which will be a week-long savings event focusing on Samsung monitors, smartphones, TVs, appliances, and more. While some deals will stick around the entire week (through March 26), others will refresh every day. Note: MacRumors is an affiliate partner with Samsung. When you click a link and make a purchase, we may receive a small...