The world's leading social media company is caught in the grip of law. The US federal government and 48 provinces have simultaneously filed antitrust cases on Facebook over the takeover of WhatsApp and Instagram. There have been serious accusations on Facebook establishing a monopoly and ending small companies with their wrong policies. Federal and provincial regulators have been investigating Facebook for 14 months. This action is considered an international tsunami against Facebook.
Facebook bought its rival Instagram in 2012 for one billion dollars (about 7500 crores rupees). After this, the WhatsApp messaging app was acquired in the year 2014 for 19 billion dollars (about 1 lakh 40 thousand crore rupees). This put the most popular WhatsApp and Instagram in the world in control of Facebook.
New York's Attorney General Letitia James has said that Facebook has worked on a well-thought-out strategy for monopoly. First, Facebook bought a fast emerging competitor Instagram. Then, when the WhatsApp messaging app quickly emerged in front of Facebook, it also acquired that. The lawsuits filed in the district courts by the provinces state that Facebook's commercial behavior has been detrimental to healthy competition. The options on the internet platform are limited to consumers. A similar case has been filed against Google in the US, two months ago.
According to Writer, lawsuits in all US provinces could force the giant social media company Facebook to sell two of its larger companies, Instagram and WhatsApp. In this case, the government has worked on Facebook's own strategy "Sell or be erased".
Facebook gave this statement
Facebook said that the facts in the case have been ignored. The company's General Counselor Jennifer Newstead has said that a few years ago, FTA allowed Facebook to buy Instagram and WhatsApp. In American business, it can now be said that no sale is ever final.
Big drop in share
According to the news agency PTI, Facebook's shares have registered a major decline after the lawsuits were filed by the US Friedral Trade Commission (FTC) and 48 states.
No hope of relief from the change in Government
President Donald Trump has already said that some big companies have become very powerful and effective. Current president Joe Biden has also expressed similar views.