In the case against Facebook, brought for antitrust violations, the key clause applies to the social network takeover plan that purchased WhatsApp and Instagram to remove the challenge to its position.
Tonight (Wednesday), a coalition of 48 states in the United States filed a major complaint against Facebook for breaching antitrust rules, several U.S. media outlets say, in conjunction with other regulators. In order to remove the challenge to its position, the key provision of the case applies to the takeover policy of a social network that buys future rivals.
The complaint alleges that in order to overthrow its corporate competitors and improve its position as the largest social network, Facebook took unlawful actions.
New York Attorney General Letitia James is bringing the case. The point of argument reflects on some of Facebook’s more well-known moves in recent years, including the purchase of the Instagram network and the acquisition of the WhatsApp messenger service, and the impact of these purchases on the domination of Facebook.
The plaintiff states are calling for Facebook to be required to divest any of those firms and warn state agencies of all transactions in excess of $10 million made by Facebook.
“For almost a decade, Facebook has used its dominance and monopolistic power to crush smaller competitors and eliminate competition, all at the expense of users,” James said at a news conference, where she revealed the accusations.
At the same time, the Federal Trade Commission filed its own complaint on the same matter, accusing Facebook of a ‘illegal monopoly’ and expressly requiring the cancellation of the merger agreements with WhatsApp and Instagram.
Since conducting an inquiry into Facebook’s partnership with political consultancy company Cambridge Analytica, the Antitrust Regulator filed the case. The violation of privacy that stemmed from these links prompted regulators to place a $5 billion fine on Facebook.
A submission for comment was not replied to by Facebook. CEO and founder Mark Zuckerberg replied in response to arguments made in recent years about his monopoly control that WhatsApp and Instagram acquisitions have led to its competition with other common social networks, especially Tiktok.
At the same time the company expanded the introduction of the Instagram service into the core business of Facebook, in a manner that would deepen the intrinsic connection between the two and make ordering purchases more difficult.
The case against Facebook is the second largest lawsuit against one of the technology companies brought this year after the U.S. A case against Google was brought in October by the Department of Justice.