A lawsuit that could radically affect the technology sector is starting in the US. In its antitrust lawsuit against Meta, the Federal Trade Commission (FTC) is demanding the separation of Instagram and WhatsApp.
Meta will lose WhatsApp and Instagram
The FTC says that Meta unlawfully dominated the digital advertising market with its acquisitions of Instagram in 2012 and WhatsApp in 2014. According to the agency, these acquisitions eliminated competition in the market, reduced service quality, weakened the security of user data, and allowed Meta to monopolize advertising revenues.
As part of the lawsuit, the FTC will argue that Instagram and WhatsApp should be compulsorily separated from Meta. This would be the first serious attempt to undo the large-scale acquisitions made by tech giants over the years.
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Meta defends itself by reminding that these investments were legally approved in the past. Today, the company says, there are many more players in the social media market and competition has increased compared to previous years.
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The FTC, on the other hand, finds this defense insufficient and maintains that structural effects on competition can only be eliminated by splitting the company. The case, which is expected to last about two months, could put not only Meta’s future back in the crosshairs, but also other major acquisitions in the tech sector.
The court’s decision will have a lasting impact on the growth strategies of digital platforms. So what do you think about this issue? You can share your opinions with us in the comments section below.
