Divestiture

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 by means of many years of anticompetitive perform.


Facebook is accused of engaging in a “systematic approach” to eradicate threats to its monopoly, which bundled the 2012 acquisition of Instagram and the 2014 acquisition of WhatsApp. Facebook’s steps have harmed competition, left consumers with several alternatives for particular social networking, and deprived advertisers of the gains of opposition.

The FTC is aiming for a everlasting injunction that would demand the divestitures of assets that involve Instagram and WhatsApp, which would suggest Facebook would be pressured to offer the two social networks. Facebook would also be prohibited from imposing anticompetitive problems on application developers and it would require governing administration approval for long term mergers and acquisitions.

“Particular social networking is