Is FTC Antitrest Trial Force Mark Zuckerberg to sell Instagram and WhatsApp? Here we all know
The US Federal Trade Commission (FTC) test against Meta is set to begin today. The bets are particularly high for CEO Mark Zuckerberg, as a decision against Meta may potentially force the company to sell both Instagram and WhatsApp.
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There is no doubt that Meta is currently ruling the world of social media. Starting with Facebook in 2004, CEO Mark Zuckerberg gradually captured other major social media platforms including Instagram in 2012 and WhatsApp in 2014. While Meta invested important resources in uniting its three platforms, the US Watchdog argues that it was a calculated trick to tighten its grip on social media and messaging landscape. The big picture indicates that Meta is a monopoly that refuses to enter any other player to enter the race. The current Federal Trade Commission (FTC) case, in the part, is a response to these very concerns, as the regulators want to determine whether the consolidation efforts of the meta have crossed the line from innovation to monopoly behavior.
The FTC antittest trial against Meta is to kick-off today and the bets are more for CEO Mark Zuckerberg. If the Federal Court agrees to follow FTC, Zuckerberg may be forced to sell WhatsApp and Instagram. Let’s see the details.
What is the FTC case against Meta?
The Federal Trade Commission (FTC) states that the acquisition of Meta of Instagram in 2012 and WhatsApp in 2014 was not just strategic trade moves, but was part of a comprehensive plan to suppress competition and confuse its dominance in the social media fields. According to the government, Meta employed a “buy or burial” approach, either obtained emerging rivals, which are considered as dangers, or were reduced to the point of irrelevance, as stated in the NPR report.
A major piece of evidence presented during the test is a 2012 internal email of Mark Zuckerberg, allegedly stated that obtaining Instagram will help “neutralize a potentially contestant”, a feeling that FTC argues reflects competitive intentions. Federal mistrust officials said that this conduct violates American competition laws and claims that breaking the company’s social media empire is the only meaningful solution.
Proposed solution: Force the meta to divide Instagram and WhatsApp. Regulators believe that such a step will pave the way for flourishing smaller platforms, promoting maximum innovation and reducing the meta struggle on digital advertising and social networking markets.
Meta reply to the case
Recently in a Meta blog, the company said, “The FTC case neglects how the market actually works and pursues a theory that is not in the real world.” The blog emphasizes that all three platforms-WhatsApp, Instagram, and Facebook-now are strieved and adapted to user. But it also claims that it is only a business strategy to move in a better direction.
The blog claims, “For FTC to win the matter, they need to prove that a properly defined product of the meta is a major part in the market consisting of all competitors, and that two acquisitions have caused competition and damage to consumers. They are both incorrect on claims.
It says, “In fact, more time is spent on Ticketkok and YouTube than Facebook or Instagram – if you only add tickets and YouTube to FTC’s social media market definition, Mata has less than 30 percent market share.”
Additionally, in a spicy turn, Meta says it is “absurd” that FTC is trying to break a great American company when the administration is trying to save Chinese -owned Ticketkok. “And this is no meaning to this regulators that we need to invest in Competition with China for the most leadership to try and weaken American companies properly,” says it.
While both sides have arguments, it will be interesting to see where the matter will be from.