US authorities ask the application to disassociate itself from Instagram and WhatsApp
Facebook is in the middle of the controversy for alleged monopolistic practices. This Wednesday, December 9, US Federal Trade Commission (FTC) sued the application because they claim they violate competition protection laws.
Prosecutors in 46 states are demanding that the company dissociate itself from Instagram Y WhatsApp. In this way its size is reduced and in this way it does not have a dominant position in the market.
What are the actions of Facebook that have generated an antitrust?
According to the plaintiffs, Facebook has illegally maintained its position of monopoly in the social networks avoiding having a competitive market and presenting better privacy protections.
The lawsuit filed in a Washington court explains that the application of Mark Zuckerberg has made a series of anti-competitive behavior. Including the purchase of rivals like Instagram Y WhatsApp in 2012 and 2014, respectively.
“This course of conduct hurts the competition, leaving consumers with few options for their personal social networks. And deprives advertisers of the benefits of competition “
In order for companies to be able to compete, the authorities ask that Facebook dissociate himself from Instagram Y WhatsApp. In this way, the company will not be able to stifle innovation and users will have more options.
“For nearly a decade, Facebook has used its dominance and monopoly power to crush smaller rivals and end competition, all to the detriment of everyday users,” said Letitia James, attorney general for the state of New York.
For his part, Ian Conner, director of the FTC’s Competition Office, explained that the lawsuit seeks to restore the way in which the applications market is managed. And prevent a single company from having control.
“Social media is central to the lives of millions of Americans. Facebook’s actions to entrench itself and maintain its monopoly deny consumers the benefit of competition. Our goal is to reverse Facebook’s anti-competitive behavior. And restore competition so that innovation and free competition can flourish “
The application also states that Facebook has restricted access to its programming interface (API). In this sense, they accuse that instead of competing, the company has suppressed competition by taking advantage of the needs of users.
Facebook’s response to monopoly lawsuit
Facebook answered the demand of the United States, noting that the authorities do not realize the negative effects it can have for its users.
“After having approved our acquisitions years ago, now the Government wants a second attempt regardless of the impact that such a precedent would have on the entire business community or on the people who choose to use our products every day”
Jennifer Newstead, Facebook’s vice president and chief legal officer, noted that laws antitrust they should not be used against successful companies.
“Instagram and WhatsApp became the amazing products that they are today. Because Facebook invested billions of dollars, and years of innovation, knowledge and experience to develop new features and better experiences for the millions of people who enjoy these products “
The executive stressed that if people choose their platforms it is not because they do not have more options. But because in these social networks they have the best services.
“Individuals and small businesses don’t choose to use Facebook’s free advertising and services because they have to. But because our applications and services offer the greatest value “