FTC Sues Meta Over Alleged Social Networking Monopoly
The Federal Trade Commission (FTC) is suing Meta, the parent company of Facebook, for allegedly maintaining a monopoly in the social networking market. Lina Khan, the FTC Chair, is leading the charge. Meta, however, contests this claim, stating it has continuously innovated and does not hold a monopoly in the properly defined market.
The FTC's lawsuit centres around Meta's acquisitions of Instagram in 2012 and WhatsApp in 2014. The agency argues that these purchases stifled competition, but Meta counters that the FTC initially approved both deals after finding no anticompetitive risks. The FTC's relevant market determination, 'personal social networking services', conveniently excludes competing platforms like TikTok and Reddit.
Meta has filed a Motion for Summary Judgment, questioning the substantial basis of the FTC's lawsuit. It argues that breaking up the company and divesting Instagram and WhatsApp could harm consumers and reduce competition. Over the past decade, these services have been deeply integrated, making a successful divestiture less likely. Meta also suggests that breaking up the company could hinder its ability to reduce harmful content online and protect user privacy.
The FTC, under Lina Khan's leadership, alleges that Meta abused its alleged monopoly power through a 'buy-or-break' strategy. Meta, however, questions the FTC's end-goal and maintains that the lawsuit lacks a substantial basis. The outcome of this legal battle will significantly impact the tech industry and consumer choices in the social networking sphere.
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