Calls for Facebook to sell off WhatsApp and Instagram

The social media platform and tech giant Facebook is facing two separate lawsuits in the US, which could threaten to break up its dominance in the sector.

The lawsuits have been filed by the US Federal Trade Commission (FTC) and a coalition of US states. They accuse the company of breaking competition law by suppressing innovation, cutting privacy protections for users of its platforms, and monetising the data that the organisation receives.

In doing this, the coalition believes that Facebook has embarked on a deliberate campaign and a “systematic strategy” of buying up more smaller, innovative companies in order to assert its dominance, and rid the market of possible competition.

What the lawsuit entails

New York attorney general Letitia James stated that 47 other states and several regional attorneys had joined together to launch an antitrust lawsuit against Facebook. In it, the company is accused of harming competition in the tech sector by buying up smaller companies such as Instagram, which it purchased for $1 billion in 2011. Facebook then turned its attention to the popular messaging service WhatsApp, which it bought in 2014 for $19 billion.

Announcing the lawsuit on Wednesday, the attorney general stated, “For nearly a decade, Facebook has used its dominance and monopoly power to crush smaller rivals and snuff out competition, all at the expense of everyday users.

“No company should have this much unchecked power over our personal interaction and social interactions. That’s why we are taking action today.”

Social media monopoly

This isn’t the first time that Facebook and other tech companies have been accused of abusing their power. Recently, several social media organisations were asked to sign up to a digital code of conduct which would help protect news publishers and reduce the influence of their news feeds.

This is the second lawsuit to be brought against a Silicon Valley tech firm this year, with Google also finding itself accused of locking out competitors by employing exclusionary deals on its search platform.

Miss James told reporters that she is expecting to collaborate with the FTC and seek an injunction that could see Facebook “require divestitures of assets, including Instagram and WhatsApp.”

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