Like any other large technology company, Facebook is no stranger to multiple lawsuits at any given moment. However, the recent series of lawsuits filed by U.S. federal regulators and more than 45 state prosecutors appears to be a real threat as they attempt to split the company for anti-competitive practices.
According to a report by the British Broadcasting Corporation (BBC), the social media giant is facing lawsuits accusing the company of taking illegal actions and acquiring its competitors to stifle competition.
Therefore, officials also asked the court to consider splitting the company, which also owns other major social media platforms such as Instagram and WhatsApp.
Facebook said that the transaction currently under review had been approved by regulators a few years ago.
As Facebook’s general counsel Jennifer Newstead said: “The government now wants to solve the problem and send a daunting warning to American companies that there will never be a final deal.”
She further added that the company Millions of dollars have been invested in Instagram and Whatsapp, and will “vigorously” crack down on any attempt to break the company apart.
Facebook also said: “Antitrust laws exist to protect consumers and promote innovation, not to punish successful companies.” However, the government’s argument seems to be “revisionist history.”
Currently, the lawsuits filed by states and the Federal Trade Commission (FTC) target the company’s acquisition of Instagram in 2012 and WhatsApp in 2014. The lawsuit accuses the company of adopting a “buy or bury” approach to any potential competitors.
Since every major or popular platform belongs to a major company, this actually hurts competition. Officials even proposed various data collection behaviors on the grounds that users have lost control of their own data and cannot support sources of advertising revenue.
