States expected to launch Facebook antitrust lawsuit against Instagram, WhatsApp purchases


Forty state attorneys are expected to launch an antitrust lawsuit against Facebook on Wednesday, citing the company’s anti-competitive behavior, people familiar with the lawsuit told Fox News.

Legislators had previously urged Facebook to purchase Instagram and WhatsApp in 2012 and 2014, respectively, which were audited by the Federal Trade Commission (FTC) at the time.

The lawsuit accuses Facebook, with more than 2.7 billion users, of buying its competitors and leaving consumers with fewer social media alternatives, experts say.

DOJ RESERVES FACEBOOK ON DISCRIMINATION AGAINST AMERICAN JOBS

Mark Zuckerberg, CEO of Facebook and the company’s lawyers, have previously defended the company’s WhatsApp and Instagram purchases.

Ticking Safety Last change % Change
FB FACEBOOK INC. 274.25 -9.15 -3.23%

“I don’t think we or anyone else would consider Instagram – as a large, multi-purpose social platform,” Zuckerberg said at a November censorship hearing before the Senate Judiciary Committee. “In fact, people at the time were all making fun of our acquisition at the time because they thought we had spent dramatically more than we needed on something that … was primarily an app for sharing photos and cameras.”

FACEBOOK’S INDEPENDENT CONSUMPTION APPROACH TO HUNTING SPEECH

New York Attorney General Letitia James is leading the bipartisan indictment, people close to the case said, first reported in September 2019 and expanded to 40 lawyers last October.

In July 2019, Facebook paid a $ 5 billion fine to the FTC for its privacy and data management practices following the Cambridge Analytica scandal that followed the 2016 U.S. presidential election. The FTC also launched an investigation into the company’s antitrust practices in June 2019, and the Department of Justice announced a month later that it was conducting an antitrust review against the technology giant.

CLICK HERE TO GET FOX BUSINESS SERVICE ON YOUR GO

The social media platform has also faced anti-competitive behavior in Canada and Europe.

Since its launch in 2010, Facebook has created an online user market with its own payment processes, a similar market on Instagram for businesses, its own gaming community, a short video feature that rivals TikTok on Instagram, and its own smart devices, which work with Amazon Alexa. Facebook also briefly considered introducing its own cryptocurrency called Libra in 2019.

Facebook has told Fox News that it has no comments yet.

READ MORE ABOUT THE RÓCSI SHOP CLICK HERE

Fox News Jake Gibson contributed to the report.