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Facebook faces two separate lawsuits in the United States accusing it of abusing its power and demanding that it sell WhatsApp and Instagram.
The US Federal Trade Commission (FTC) and a coalition of US states are suing the social media company on the grounds that it has employed a “systematic strategy” to eliminate its competition.
Facebook is accused of violating competition law by suppressing innovation, cutting privacy protections for users of its platforms and monetizing data, according to New York Attorney General Letitia James.
He said his “predatory takeover” of companies had undermined confidence in the market and the lawsuit he had filed with 45 other states and three districts would call for Facebook’s acquisitions of Instagram and WhatsApp to be deemed illegal.
The federal case seeks an injunction that “could, among other things: require divestments of assets, including Instagram and WhatsApp.”
Mark Zuckerberg’s company bought Instagram in 2012 for a billion dollars and WhatsApp two years later for 19 billion dollars.
The shares fell 3% on news of the lawsuits.
Ms. James told reporters that she looked forward to assisting the FTC in the legal process.
