US Authorities Sue Facebook – E24

On Wednesday night, news broke that the Federal Trade Commission (FTC) and 48 states are suing the internet giant for violations of competition law.

According to CNBC, Facebook announced that the authority started the investigation of the company as early as July last year.

Both lawsuits point to the acquisition of Instagram by Facebook in 2012 and WhatsApp in 2014, in which they accuse them of anti-competitive behavior.

According to the lawsuit, this has led to Facebook illegally becoming a monopolist on social media.

The lawsuits could result in Facebook having to sell the two apps.

“Our goal is to curb Facebook’s anti-competitive behavior and restore competition so that free competition can flourish,” said FTC Director Ian Connor.

The stock fell sharply after the announcement, but has since recovered slightly. The stock is down nearly two percent to 21.20.

Paid $ 5 billion to the FTC last year

Facebook has been under critical scrutiny of its handling of user data and competitive practices since 2017.

It was later revealed that the service had been used by the political computer company Cambridge Analytica, to obtain information about users without their consent.

This ended when Facebook signed a $ 5 billion settlement with the FTC last year.

On the other hand, lawmakers have criticized the FTC for not conducting sufficient investigations into Facebook’s takeover of the two apps.

The House Judiciary subcommittee released internal Facebook documents of its own investigation, showing that Facebook leaders were concerned about the growing popularity of Instagram.

Google sued for monopoly business

Google is also under scrutiny during the day.

In October, it emerged that the US Department of Justice and 11 states are suing the tech giant for abusing its domain in internet searches to restrict competition.

– The company has maintained its monopoly power through exclusionary practices that are detrimental to competition, said Assistant US Attorney General Jeffrey Rosen.

Google controls about 90 percent of global Internet searches and monetizes search-related ads.

Politicians and consumer organizations alike have long accused Google of abusing its dominant position in the market when it comes to web search and marketing to avoid competition and increase revenue.