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Facebook should sell WhatsApp and Instagram: is the social network getting too big?

2020-12-13T16:01:23.784Z


Facebook is repeatedly criticized. Now the online giant has to defend itself in court in the USA.


Facebook is repeatedly criticized.

Now the online giant has to defend itself in court in the USA.

  • The globally successful

    Instagram

    and

    WhatApp applications also

    belong to

    Facebook

    .

  • Mark Zuckerberg's

    group is to cede the services acquired a few years ago.

  • This is what the

    US government

    demands

    in an indictment.

    But Facebook will fight back.

Washington -

Facebook

is supposed to sell Instagram * and WhatsApp *.

The US government and 40 states want to achieve this in court.

The plaintiffs accuse founder

Mark Zuckerberg's

social network of

unfair competition.

A quick agreement is not in sight.

Facebook is getting ready for years of trial.

Facebook

saw

potential in

Instagram

*

as early as 2012

and bought it for around a billion dollars.

The same was true for

WhatsApp

.

Zuckerberg acquired the messenger service in 2014 for $ 22 billion.

With the increasing number of users, the value and also the influence of the portals has increased significantly.

Both services now each have well over

a billion users

.

Will the state break up?

Facebook is supposed to sell WhatsApp and Instagram

The

FTC trade commission

, which

is responsible

for consumer protection

in the

US

, started its lawsuit by stating that Facebook was the

dominant online network

and had

monopoly power

.

The group defends this lucrative monopoly in a "systematic strategy" with anti-competitive means.

Facebook's

chief lawyer Jennifer Newstead held against it: "Antitrust laws exist to protect consumers and promote innovation, not to punish successful companies." Facebook has

invested billions of dollars

to make Instagram and

WhatsApp

so successful.

The defense attorney also pointed out that the supervisory authority itself had once approved the takeovers.

The lawsuit now sends out the signal "that no purchase is ever final".

Again and again there had been demands in the past,

Instagram *

and

to detach

WhatsApp

from Facebook again.

In recent years, the group has built the infrastructure behind the platform of its online network as well as Instagram and

WhatsApp *

brought closer together.

That would make a split technically more difficult.

Facebook in court over monopoly allegations

It is controversial whether breaking up the group makes sense at all.

Analyst Jessica Liu from the market research company Forrester assumes that even Facebook could not do much.

With more than 1.8 billion users daily in its online network alone, the group has an "insurmountable" strength.

Along with Instagram, WhatsApp and the second instant messaging service Messenger comes

Facebook

to

2.54 billion users every day

.

The attorneys at law of 48 US states and territories also demand in their lawsuit that

Facebook

should inform

them of all acquisitions valued at more than

ten million dollars

.

"Facebook has used its monopoly power to destroy smaller rivals and wipe out the competition,

all at the expense of everyday users,

" criticized

New York Attorney General Letitia James

.

The lawsuit should send a clear message to Facebook and other companies: that attempts to stifle competition, hinder innovation or curtail privacy protection would be pursued with vigor.

Online giants were

barely regulated

in the

US

for a long time.

In the end, however, the mood changed.

In October, the government and eleven states targeted Internet giant Google with a competition lawsuit.

The allegation is that

Google

protects its dominance in Internet search and the associated advertising in an illegal manner.

The company rejected this.

Legal experts doubt the lawsuit will succeed.

Among other things, it must be proven that US consumers are

harmed

by anti-competitive behavior by

Google

.

Facebook in court: Zuckerberg is preparing for years of trial

The

FTC and the states must

also

prove this

in their lawsuits against

Facebook

.

They point out that consumers missed out on possible innovations from an independent Instagram service, for example, as well as the possibility of using an online network not controlled by Facebook.

Facebook argued exactly as

Google

has already done: You have to take into account the fierce competition for the attention of users on the Internet.

The

Snapchat

network is also a much sought-after competitor

.

Zuckerberg

had already tried to buy it.

However, the founder turned down the offer.

Zuckerberg

was

combative

in an internal message to the staff that was available to the

New York Times

.

"Overall, we disagree with the government's allegations and plan to fight them in court.

The reality is that we compete fairly with many other services in everything we do, ”the 36-year-old wrote.

Facebook's competitors have hundreds of millions or billions of users, said Zuckerberg and listed Google, Twitter, Snapchat, Apple's chat service iMessage and Google's video platform YouTube.

For employees and their teams, the lawsuit should not change anything,

Zuckerberg

assured

in his employee letter.

At the same time, it could take years before the process was finally concluded.

"In the meantime, you should only communicate with our legal team on these cases and related matters," he cautioned staff.

(lb with dpa) * Merkur.de is part of the Ippen digital network

List of rubric lists: © picture alliance / Peter Dasilva

Source: merkur

All news articles on 2020-12-13

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