FTC, in coalition with 46 state AGs, plus Guam and DC, sues Facebook, alleging Instagram and WhatsApp acquisitions were used to stifle competition

Agency challenges Facebook's multi-year course of unlawful conduct — The Federal Trade Commission today sued Facebook …

Federal Trade Commission 2020-12-10

Discussion

@fbnewsroom @fbnewsroom on x
We're reviewing the complaints & will have more to say soon. Years after the FTC cleared our acquisitions, the government now wants a do-over with no regard for the impact that precedent would have on the broader business community or the people who choose our products every day.
@sarahfrier Sarah Frier on x
Wowww the FTC calls for the Facebook and Instagram acquisitions to be unwound. https://twitter.com/...
@caseynewton Casey Newton on x
If you are the Facebook software engineer who sent this internal email in 2013, I like your style and would love to Zoom with you https://twitter.com/...
@newyorkstateag Ny Ag on x
BREAKING: I'm leading a bipartisan coalition of 48 attorneys general in a lawsuit against @Facebook to end its illegal monopoly. We are taking action to stand up for the millions of consumers and many small businesses that have been harmed by Facebook's illegal behavior.
@mikeisaac Rat King on x
Comment from Facebook GC Jennifer Newstead: “This is revisionist history. Antitrust laws exist to protect consumers and promote innovation, not to punish successful businesses.” https://twitter.com/...
@senwarren Elizabeth Warren on x
The FTC and 48 states now recognize what I've been arguing for a long time: Facebook's power snuffs out competition and the Instagram and WhatsApp purchases should be unwound. There's more work to do, but this is a big step in the fight to #BreakUpBigTech. https://www.cnbc.com/..…
@chopraftc Rohit Chopra on x
Today, I voted to sue @Facebook for illegal monopolization. The lawsuits filed by @FTC and 48 AGs allege that Facebook bought or buried competitive threats. Our complaints seek all relief necessary to remedy the harm, including breaking up the company. https://www.ftc.gov/...
@alexstamos Alex Stamos on x
The FTC reads their own consent decrees, right? As I pointed out when it happened, the FTC really missed the competition boat with their huge focus on API access and now this section, while accurate, is at least tonally if not practically incompatible with what they demanded. htt…
@chopraftc Rohit Chopra on x
Facebook sells ads that are shown to users based on highly personal data it collects and analyzes. The tech giant makes more money if it can monopolize user attention. The more time users spend on @Facebook, the more data the company can collect and the more ads it can sell.
@repkenbuck Congressman Ken Buck on x
Facebook has crushed competition by breaking the law. Big Tech's reckoning has just begun. https://www.nytimes.com/...
@ceciliakang Cecilia Kang on x
HUGE. Did not expect the call for Breakup. This is going to be a hell of a war in court. https://twitter.com/...
@aoc Alexandria Ocasio-Cortez on x
Good. Facebook is absolutely an out-of-control monopoly - one that has abused its market power to squash competition, manipulate democracies, and crush journalism. Thank you @TishJames for leading the way. (Maybe when Instagram spins off they can change the bottom tabs back😉) htt…
@berniesanders Bernie Sanders on x
I applaud this effort to end Facebook's monopoly. Their greed knows no bounds, and they've used their power to try and control too much of political and economic life all over the world. The only thing that will stop Facebook is to say “enough is enough” and break it up. https://…
@carminesabia Carmine Sabia on x
It is being led by a Democrat AG but conservatives should get behind this. Facebook has bent over backwards to support Democrats and yet Republicans have defended them. F**k them. They reap what they have sown. https://twitter.com/...
@mikeisaac Rat King on x
Facebook General Counsel coming out strong in a more fulsome response, linked below: “No American antitrust enforcer has ever brought a case like this before, and for good reason.” https://about.fb.com/...
@alecstapp Alec Stapp on x
It wasn't just Jon Stewart. Most people thought Facebook was overpaying for Instagram at a $1 billion purchase price. And after an investigation, the FTC voted unanimously to clear the acquisition. https://twitter.com/...
@walthickey Walter Hickey on x
lmao why did Georgia, South Carolina, and Alabama not sue Facebook https://twitter.com/...
@davidcicilline David Cicilline on x
(1/2) Facebook is a monopoly. Its abuse of its dominance harms competition, innovation and other businesses. In the absence of competition and accountability, Facebook has harmed people's privacy and allowed disinformation to flourish on its platform, threatening our democracy.
@brooklynmarie Brooke Binkowski on x
Facebook, which absolutely devastated my industry by supplying phony metrics about video vs. text, arbitrarily throttling page reach, going after fact-checkers who didn't do exactly what they wanted and personally smearing them, now has concerns about the bUsInEsS cOmMuNitY https…
@rmac18 @rmac18 on x
Facebook does have an all hands meeting tomorrow that is expected to be led by Zuckerberg. That should be... interesting.
@jgreenblattadl Jonathan Greenblatt on x
Because one man decided Holocaust denial was misinformation and not hate speech, despite advice from @ADL and others in the Jewish community, that was the rule of law on the largest communication platform in human history for a decade. This cannot continue.https://abcnews.go.com/…
@mattmfm Matt McDermott on x
Facebook must be held accountable. So great to see attorneys general from around the country stepping up to do just that. https://twitter.com/...
@thomasphi2 Thomas Philippon on x
(1/) A thread on the FTC lawsuit against Facebook, and the DOJ's lawsuit against Google. First, it is long overdue. Second, it's a good thing that it starts under a Republican administration and continues under a democratic one. https://www.wsj.com/... via @WSJ
@munster_gene Gene Munster on x
Tim Cook, in an unrelated podcast today, mentioned a “lack of responsbility” from Big Tech outside of Apple. This makes sense given It's easy for Apple to take the high road given they aren't reliant on advertising.
@kantrowitz Alex Kantrowitz on x
Facebook's defense: You can't break us up, you cleared the acquisitions! https://twitter.com/...
@calebjhull Caleb Hull on x
...she says as she tweets... on the platform that is a competitor to Facebook https://twitter.com/...
@ashk4n Ashkan Soltani on x
Encouraging that @FTC @Facebook #antitrust complaint explicitly cites “privacy protections” as a competitive consideration (not just price). PDF of complaint: https://www.ftc.gov/... https://twitter.com/...
@jordannovet Jordan Novet on x
what if Facebook had bought Path
@mattnavarra Matt Navarra on x
Facebook is pissed https://twitter.com/...
@chrisinsilico @chrisinsilico on x
@fbnewsroom Spare us this feigned pearl clutching. Facebook has had “no regard” for its impact on society or democracy. Maybe try being a less shitty company 🤷‍♂️
@will_doran Will Doran on x
FB produces lots of clicks and ad revenue, so media execs saw those booming video numbers and laid off journalists and researchers to “pivot to video.” Turned out it was fake, though. Some ended up even worse off financially. So guess what? More layoffs https://www.theatlantic.co…
@stroughtonsmith Steve Troughton-Smith on x
@elkmovie no, but the Apple case wasn't centered around splitting it up from companies it acquired, it was centered around splitting the App Store from Apple
@awolfeful April Wolfe on x
Hello, I would like someone to make Facebook pay for lying to news orgs about video analytics and actively causing the decimation of countless newsrooms and outlets. https://twitter.com/...
@brentbozell Brent Bozell on x
States attorneys general moving to break up @facebook is long overdue. Facebook owns its top competitors. The result is conservatives get censored on major platforms and there's no incentive for one of them to take a #freespeech approach. https://www.cnbc.com/...
@gravelinstitute Gravel Institute on x
Break up Facebook now. https://www.nytimes.com/...
@rmac18 @rmac18 on x
I have today off, but if you want to know how the antitrust lawsuits are being talked about inside Facebook, they're not. Execs have yet to make an internal statement to the whole company about it. https://www.buzzfeednews.com/ ...
@migueldeicaza Miguel de Icaza on x
Christmas arrived early! This fills my heart with joy. I would go further, I would split a few other things as well, like Oculus, and chop a few Facebook services here and there. https://twitter.com/...
@shiraovide Shira Ovide on x
How the state AGs use Facebook vs. How FTC lawyers use Facebook https://twitter.com/...
@yegg Gabriel Weinberg on x
Instead of “bringing people together,” Facebook has torn societies apart. It's a privacy nightmare: Internet surveillance + anti-competitive acquisitions/tactics = filter bubbles, discrimination, polarization, etc. Facebook was never going to fix itself. https://www.cnbc.com/...
@rmac18 @rmac18 on x
I get that Facebook's argument is that the FTC approved its deals previously, but if we're talking about “revisionist history” remember when Zuckerberg made that speech last year and said he created Facebook to give people a voice against the Iraq War. https://www.buzzfeednews.co…
@rmac18 @rmac18 on x
Some employees have posted news clips and articles about the antitrust suit, but there are few engagements from their colleagues on Facebook's internal message board, Workplace.
@elkmovie Michael Love on x
@stroughtonsmith It helps that they don't buy big companies - nobody's suing Apple to force them to divest themselves of Dark Sky.
@theonion @theonion on x
'You're Deleting Your Account? We'll Be Sad To See You Go,' Says Facebook Prompt Showing User Photo Of Own Dead Body https://www.theonion.com/... https://twitter.com/...
@slpng_giants @slpng_giants on x
Remember, next time @facebook keeps Holocaust denial or calls for violence or election disinformation on their site under the guise of being a “free expression” platform, they shut down their own employees ability to talk about the company's policies. https://twitter.com/...
@jason_kint Jason Kint on x
@fredericg @AnandWrites @johnbattelle It won't be. They divided the cases. DOJ is focused on Apple and Google. I highly doubt this will change on FB, they'll let FTC run with it assuming it files tomorrow.
@elkmovie Michael Love on x
@stroughtonsmith Sure, but that's a much bigger hill legally - Apple can make the case that iOS and the App Store are inseparable in a way that Facebook can't really do with Instagram or WhatsApp.
@josh_moon Josh Moon on x
Alabama, of course, not part of this massive lawsuit that might actually protect consumer interests. I guess joining doesn't specifically help Steve Marshall's personal political goals, so to hell with it. https://twitter.com/...
@wongmjane Jane Manchun Wong on x
Wow. This is like “United States v. Microsoft Corp” to me when it happened back in the distant past https://twitter.com/...
@kantrowitz Alex Kantrowitz on x
After watching what's happened to Google and Facebook, folks at Amazon and Apple can't be too happy. The standard is set.
@carolecadwalla Carole Cadwalladr on x
Thoughts & prayers https://twitter.com/...
@rileytestut @rileytestut on x
Also, that's now 2 of the 4 tech giants facing repercussions from congress' antitrust investigation...Apple and Amazon must be feeling the heat 😅
@jason_kint Jason Kint on x
Anyone who reads the 128 page complaint from the 48 state AGs vs Facebook will entirely understand why Facebook's whining and protest about Apple rolling out its new tracking prevention with limits on its IDFA are entirely empty and self-serving. @andymstone
@yashalevine Yasha Levine on x
bezos will be willing to buy https://twitter.com/...
@marietjeschaake Marietje Schaake on x
This is a big step to mitigate monopolistic harms ↘️ https://twitter.com/...
@profgalloway Scott Galloway on x
Mom & Dad woke up https://twitter.com/...
@karlbode Karl Bode on x
and so it begins lawmakers who literally let monopolies like AT&T write competition-crushing telecom law sharing deep thoughts on monopolies and competition https://twitter.com/...
@stroughtonsmith Steve Troughton-Smith on x
Apple looking at the Facebook antitrust lawsuits just filed: https://twitter.com/...
@mattnavarra Matt Navarra on x
The is the angriest and most emotional tweet I've seen Facebook post https://twitter.com/...
@chopraftc Rohit Chopra on x
In the move to mobile, @Facebook executives were frightened that new innovators were winning away user attention. It was being outpaced by competitors' rapid development of innovative ways to connect. New apps quickly become popular. Facebook was clunky in comparison.
@chopraftc Rohit Chopra on x
Facebook's illegal monopolization allows it to dictate the terms with users, content providers, advertisers, developers, and others. Unsurprisingly, these terms are good for @Facebook and no one else. https://ag.ny.gov/...
@b_fung Brian Fung on x
Rep. David Cicilline, who led a House investigation of the tech sector and concluded its biggest players have monopoly power, is praising the lawsuits. “I applaud the FTC and state attorneys general ... this marks a major step.”
@benedictevans Benedict Evans on x
I heard the head of a major European competition agency explain this EXACT trade off at the beginning of the year - the competition authority says ‘allow unrestricted data access’ and the privacy regulator says 'you're going to prison if you do that' https://twitter.com/...
@shiringhaffary Shirin Ghaffary on x
Of course we don't know how this case will play out, but just seeing the FTC call for Facebook to potentially unwind Instagram and Whatsapp acquisitions feels like a real shift in how high the stakes are in tech regulation right now. https://www.ftc.gov/...
@joshsternberg Josh Sternberg on x
Facebook not taking as big of a hit (at least as of this tweet) on Wall Street as one would think after the government is suing it for being an illegal monopoly.
@alexstamos Alex Stamos on x
This has no impact on the WhatsApp/Instagram issue, which seems to be a much cleaner complaint where the solutions have fewer trade-offs, but the FTC should be consistent about whether it's unfair to allow or not allow API access to competitors who pose a privacy risk.
@alexstamos Alex Stamos on x
There are many options between “completely open” and “completely closed” when discussing privacy vs competition risks on communication systems where users can grant access to the data of others, but it's not clear that the FTC understands that such a tradeoff even exists.
@alexstamos Alex Stamos on x
The largest trade-off with breaking off Instagram would probably be around safety and security issues, which could be mitigated by the new IG Inc. continuing to get backend services from FB while having product, policy and financial independence. Breaking off WhatsApp is easy.
@markdistef Mark Di Stefano on x
*breaks glass marked Nick Clegg*
@ow @ow on x
It's no coincidence that Facebook has been falling over itself to integrate Messenger/Instagram deeply all of a sudden—a literal race to make it as hard as possible to unbundle the products into independent companies again https://twitter.com/...
@ftc @ftc on x
FB allegedly has made key APIs available to third-party applications only on the condition that they refrain from developing competing functionalities, and from connecting with or promoting other social networking services 9/12
@ftc @ftc on x
Its unmatched position has provided FB with staggering profits. Last year alone, FB generated revenues of more than $70B and profits of more than $18.5B, according to the complaint 5/12
@ftc @ftc on x
According to the complaint, FB is the world's dominant personal social networking service and has monopoly power in a market for personal social networking services 4/12
@ftc @ftc on x
FTC alleges that FB, over many years, has imposed anticompetitive conditions on third-party software developers' access to valuable interconnections to its platform, such as the APIs that allow the developers' apps to interface with FB 8/12
@sarahfrier Sarah Frier on x
A Facebook breakup is what the FTC currently expects is necessary, but it's not a done deal/there's still a lot of negotiation with Facebook before a resolution is reached. And they say they have the power to ask for this. https://twitter.com/...
@benedictevans Benedict Evans on x
“Facebook bought Instagram and WhatsApp because they were competitive threats”. Um, yes? You knew that in 2010.
@caseynewton Casey Newton on x
I sure would not mind knowing what has been redacted on page 6 of this complaint! https://twitter.com/...
@paulmasonnews Paul Mason on x
Break it up and make the ID registry a public good 👇🏽 https://twitter.com/...
@jamestitcomb James Titcomb on x
Subheads in the NY AG's press release on Facebook are questionable https://twitter.com/...
@ftc @ftc on x
FTC alleges FB cut off API access to blunt perceived competitive threats from rival personal social networking services, mobile messaging apps, and other apps with social functionalities 10/12
@benedictevans Benedict Evans on x
“The FTC is seeking a permanent injunction in federal court that could, among other things: require divestitures of assets, including Instagram and WhatsApp; () and require Facebook to seek prior notice and approval for future mergers and acquisitions.”
@ftc @ftc on x
Complaint alleges that Facebook execs, including CEO Mark Zuckerberg, quickly recognized that Instagram was a vibrant and innovative personal social network and an existential threat to FB's monopoly power 6/12
@ftc @ftc on x
FTC is seeking a perm. injunction in court that could, among other things: req FB to divest assets, incl Instagram & WhatsApp; prohibit FB from imposing anticompetitive conditions on software developers & req. FB to seek prior notice/approval for future mergers/acquisitions 3/12
@ftc @ftc on x
Complaint alleges FB engaged in a systematic strategy—including its 2012 acquisition of Instagram, its 2014 acquisition of WhatsApp and the imposition of anticompetitive conditions on software developers—to eliminate threats to its monopoly: https://www.ftc.gov/... 2/12
@janelytv Jane Lytvynenko on x
This subhead from NY AG's Facebook lawsuit announcement email https://twitter.com/...
@ftc @ftc on x
Complaint alleges that, by 2012, WhatsApp had emerged as the clear global “category leader” in mobile messaging. FB chose to buy an emerging threat rather than compete & announced an agreement in Feb. 2014 to acquire WhatsApp for $19B, according to the complaint 7/12
@edbott Ed Bott on x
Can't wait till the AGs of South Dakota and South Carolina explain why they opted not to be part of the entire United States in this action. Well, I guess I just answered my own question w/ regard to SC. https://twitter.com/...
@ericnewcomer Eric Newcomer on x
odd day to do it optically. DoorDash and Airbnb are showing that there are plenty of new business models. obviously very different spaces. but strange to do it right now. 11th hour of the Trump administration I guess https://twitter.com/...
@ftc @ftc on x
#BREAKING: @FTC today sued Facebook (FB), alleging that the company is illegally maintaining its personal social networking monopoly through a years-long course of anticompetitive conduct: https://www.ftc.gov/... 1/12 https://twitter.com/...
@evan_greer Evan Greer on x
This is good. Facebook deserves it. But the purchase of WhatsApp & Insta are sort of the tip of the iceberg. FB's data harvesting biz model is the core of their anti-competitive behavior, and some of the lawmakers cheering this on have blocked meaningful privacy leg for years htt…
@codinghorror Jeff Atwood on x
This would definitely hit Facebook where it hurts. I'm impressed with the initiative. https://twitter.com/...
@karlbode Karl Bode on x
I mean don't get me wrong, I'm glad the government is reining in Facebook's anti-competitive behavior, but this thing we do where we pretend U.S. antitrust enforcement is tough or at all consistent is adorable
@caseynewton Casey Newton on x
Wow the FTC is really going for it: calling for Facebook to divest itself of Instagram and WhatsApp https://www.ftc.gov/... https://twitter.com/...
@alexeheath Alex Heath on x
New York attorney general Letitia James is announcing that 48 U.S. states have filed an antitrust lawsuit against Facebook. “For nearly a decade, Facebook has used its dominance to crush smaller rivals and snuff out competition” she said in opening remarks. $FB
@karlbode Karl Bode on x
So Comcast and AT&T are up next, right? https://twitter.com/...
@karlbode Karl Bode on x
remember when this company launched a “privacy protecting VPN” that was basically just spyware tracking users' online behavior? good times https://www.washingtonpost.com/ ...
@ceciliakang Cecilia Kang on x
👀👀👀👀 Mark Zuckerberg's letter to employees: “Today's news is one step in a process which could take years to play out in its entirety. In the meantime, you shouldn't be communicating about these cases or related issues except with our legal team.”
@jmorse_ Jack Morse on x
Not exactly sure Instagram users view this as a positive, to be honest: “The Instagram you see today is the Instagram that Facebook built, not the app it acquired.” https://about.fb.com/...
@chillmage @chillmage on x
Pretty bold to respond to massive antitrust lawsuits with a blog post that begins with “billions of people use Facebook's products every day” https://about.fb.com/...
@rmac18 @rmac18 on x
Zuckerberg posted about the lawsuits internally about an hour ago. “Overall, we disagree with the government's allegations and we plan to fight this in court,” he writes. Otherwise, pretty bland.
@migueldeicaza Miguel de Icaza on x
Facebook lawyer lies on their blog post- claiming that the FTC says “no sale is ever final”. That's not what the lawsuit says. What it says is that FB went to great lengths to prevent competition, in violation of antitrust laws, and has offered a benevolent remedy. https://twitte…
@alexeheath Alex Heath on x
FB's longer response to these antitrust lawsuits is... something. https://about.fb.com/... “The Instagram you see today is the Instagram that Facebook built, not the app it acquired” “No American antitrust enforcer has ever brought a case like this before, and for good reason”
@tonyromm Tony Romm on x
i think the antitrust enforcers do not see this statement as a negative! https://twitter.com/...
@sarafischer Sara Fischer on x
“This lawsuit risks sowing doubt and uncertainty about the US government's own merger review process and whether acquiring businesses can actually rely on the outcomes of the legal process.” -Facebook https://twitter.com/...
@ceciliakang Cecilia Kang on x
In Short: Zuckerberg is ready to fight. And telling employees to zip it on anything that can jeopardize their defense. https://twitter.com/...
@robinberjon Robin Berjon on x
This isn't the detail that anyone is going to focus on, but in this release Facebook is listing The New York Times as... a platform? https://about.fb.com/...
@mattnavarra Matt Navarra on x
Facebook explains why it thinks the FTC's lawsuit is bullshit https://twitter.com/...
@mylesudland Myles Udland on x
Facebook's response to why the FTC is wrong to bring its lawsuit champions innovation, except in the specific area of antitrust law where things are apparently immutable. https://about.fb.com/... https://twitter.com/...
@kifleswing Kif on x
Apple listed first among “world-class competitors” in Facebook's response to FTC https://about.fb.com/... https://twitter.com/...
@newyorkstateag Ny Ag on x
Facebook has used its monopoly power to crush smaller rivals and snuff out competition, all at the expense of everyday users. Instead of improving its own product, Facebook took advantage of consumers and made billions of dollars converting their personal data into a cash cow.
@newyorkstateag Ny Ag on x
Today's suit should send a clear message to Facebook and every other company: Efforts to stifle competition, reduce innovation, or cut privacy protections will be met with the full force of almost every attorney general's office in the nation.
@agbecerra Attorney General Becerra on x
NEWS: We're suing Facebook for violating federal antitrust laws by purchasing actual and potential competitors to maintain a monopoly. Innovation depends on a fair and competitive marketplace. But rather than outcompete or outperform, Facebook simply bought the competition. https…
@superwuster Tim Wu on x
Very proud of the Facebook antitrust complaint drafted by my former colleagues at the New York State @NewYorkStateAG — it obviously took extraordinary amounts of work. Who said the States don't matter? Have a read: https://ag.ny.gov/...
@zephyrteachout Zephyr Teachout on x
What a great day for the future of the internet.
@ceciliakang Cecilia Kang on x
This is a Section 2 case and here is one piece of evidence against Facebook: Zuckerberg on IPO day: “I remember your internal post about how Instagram was our threat and not Google+. You were basically right. One thing about startups though is you can often acquire them.” https:/…
@kantrowitz Alex Kantrowitz on x
Something that should be lost in the noise. The 48 AGs, who did not clear the acquisitions, are also seeking a breakup: https://ag.ny.gov/... https://twitter.com/...
@safiyanoble Safiya Umoja Noble PhD on x
Thank you @TishJames and @chopraftc for your fearless leadership on behalf of the public. It's time to take on Big Tech in a meaningful way that protects the vulnerable. https://twitter.com/...
@jowens510 Jeremy C. Owens on x
Alabama, South Carolina and South Dakota attorneys general decided not to join effort to break up Facebook. However, they did decide to join on lawsuit seeking to invalidate the results of the election on the same dauy.
@ncago NC Attorney General on x
AG Stein is asking the court to: 1. Stop Facebook's anticompetitive behavior 2. Restrict Facebook's ability to make large acquisitions without notifying the states, and 3. Provide additional relief as appropriate. Read the full press release here: https://ncdoj.gov/...
@generalbrnovich Mark Brnovich on x
A bipartisan coalition of 48 AGs are suing Facebook, whose dominant market power has been achieved at the cost of consumer choice, market innovation, & consumer privacy. AZ consumers & small businesses need to be protected from Big Tech's illegal behavior. https://www.azag.gov/..…
@chopraftc Rohit Chopra on x
I thank the state attorneys general across the country, led by @NewYorkStateAG, and my colleagues at the @FTC for their tenacity to investigate and take action to hold @Facebook accountable and fix this broken behemoth. https://ag.ny.gov/...
@ilattygeneral IL Attorney General on x
My office is joining a nationwide coalition to sue @Facebook and end its illegal monopoly. Our coalition, led by @NewYorkStateAG, is seeking to immediately halt @Facebook's illegal, anticompetitive conduct and block the company from continuing this conduct.
@agbecerra Attorney General Becerra on x
Facebook leveraged its monopoly power to dominate the market by buying actual and potential competitors, including Instagram and WhatsApp. Monopolistic behavior thwarts a healthy market, and Californians deserve better. https://oag.ca.gov/...
@grinich Michael Grinich on x
@can fits perfectly https://twitter.com/...
@sal19 @sal19 on x
I would love to know who this mystery company that Facebook has tried to buy numerous times over the years, according to the FTC's lawsuit, might be https://twitter.com/...
@hawleymo Josh Hawley on x
This is a necessity. The @instagram and WhatsApp mergers with @Facebook were anti-competitive, they were meant to be anti-competitive, and they should be broken up https://twitter.com/...
@edmundlee Edmund Lee on x
Gov't says Facebook unfairly uses its monopoly power to squelch competition and Instagram/WhatsApp should be unwound, e.g., sold off... Cutting @instagram would eliminate 1/3 of Facebook's ad revenue and cut its share of the ad market from 35% to 23% https://www.ftc.gov/... https…
@caseynewton Casey Newton on x
The FTC's complaint that there is no real competition in this market is 53 pages long and does not once mention the word “TikTok.” TikTok has 800 million users worldwide. I'm sorry but it's worth a mention!
@film_girl Christina Warren on x
This is so dumb. The DoJ approved both of these mergers and Instagram had 13 employees when it was acquired. https://twitter.com/...
@can Can Duruk on x
Calling it: Pinterest https://twitter.com/...
@dez_blanchfield Dez Blanchfield on x
3/ well that just got very real very fast .. didn't it.. https://twitter.com/...
@colorofchange @colorofchange on x
Because @Facebook has been allowed to amass enough power to avoid consequences, they regularly: * Buy and force out their competitors * Allow misinformation to spread virtually unchecked * Enable white supremacists to organize online * Mistreat Black employees https://twitter.com…
@tonyromm Tony Romm on x
FB advises employees to stop saying they should destroy competitors and do land grabs over email https://twitter.com/...
@guykawasaki Guy Kawasaki on x
Why anyone thinks this is going to solve the problem is beyond me. BTW, what is the problem they are trying to solve? https://www.theverge.com/...
@brooklynmarie Brooke Binkowski on x
Guess the Zuck's not so big on freedom of speech after all, huh? https://twitter.com/...
@tayhatmaker Taylor Hatmaker on x
if instagram was forced to become a separate company could it be good again?
@teddyschleifer Teddy Schleifer on x
plz don't tweet about it!!! https://twitter.com/...
@will_duffield @will_duffield on x
Forcing the divestiture of Instagram and WhatsApp would do little to change their dominance of their respective market niches, and offers no real benefits to users. https://twitter.com/...
@mayatcontreras Maya Contreras on x
Fantastic! Have been discussing the need for antitrust to address social/media monopolies for a while now; very thankful to have such a brilliant AG in @TishJames #facebook https://twitter.com/... https://twitter.com/...
@swodinsky Shoshana Wodinsky on x
👀👀👀👀 👀👀👀 https://twitter.com/...
@film_girl Christina Warren on x
When FB bought Instagram, you had people loudly claiming they overpaid (I said it was the best billion they ever spent). FB hadn't even gone public when it acquired Instagram (it was in its quiet period). Now it allegedly killed innovation. This is insane.
@jrhuddles Jennifer Huddleston on x
This could also open the door for similar action in any range of industries changing the current approach to M & A and deterring what could be beneficial actions for consumers. 4/
@jrhuddles Jennifer Huddleston on x
In short, it seems far from clear that a break up would benefit consumers and it certainly wouldn't solve any of the other tech policy problems and might even make them worse
@jrhuddles Jennifer Huddleston on x
Finally, there is the question of what would it do for the consumer experience. Would we see the return of a subscription model for WhatsApp? Would separate platforms have fewer resources to engage in key content moderation, have to leverage more data, or sell more advertising?
@jrhuddles Jennifer Huddleston on x
At the time Insta and WhatsApp were not the giants they are today and these acquisitions were even laughed at and criticized. I worry that such actions could chill a part of the Silicon Valley ecosystem not just for Facebook but for many other tech companies. 3/
@willoremus Will Oremus on x
My first thought on the Facebook antitrust discourse is that a lot of the folks who find a breakup outrageous have a narrow understanding of antitrust law's scope and purpose. It isn't just about “monopoly,” it's about market power, anticompetitive behavior, and consumer welfare.
@karlbode Karl Bode on x
and of course here comes Josh Hawley, who has literally never said a single negative word about America's telecom monopolies, now just super-authentically concerned about monopolies and competition issues https://twitter.com/...
@chopraftc Rohit Chopra on x
I believe the company's failures and repeat offenses must be corrected through structural reform. The FTC and the states have asked the court to order @Facebook to divest assets and business lines, and take any other steps needed to restore competition.
@film_girl Christina Warren on x
The WhatsApp acquisition didn't receive the regulatory scrutiny it perhaps should have. But the deal went through. I can see *maybe* being mad about it. I cannot understand the argument that Instagram with 13 employees and negative revenue was anything but a smart acquisition.
@film_girl Christina Warren on x
Honestly, I'm not some anti-regulation zealot but this sort of action, nearly a decade after one of the acquisitions, should freak every company out. Don't be too successful with someone you buy or else you'll get sued.
@film_girl Christina Warren on x
There are lots of reasons to sue Facebook. Facebook growing Instagram into one of the biggest social networks is not one of them.
@ow @ow on x
I wrote about Facebook's mad rush to integrate all of its acquisitions, and why it was designed to make it difficult for the government to rip them apart earlier this year 👇 https://onezero.medium.com/...
@sal19 @sal19 on x
Facebook's blue app has lost users and engagement to Instagram, according to the FTC's lawsuit https://twitter.com/...
@martinsfp Martin Sfp Bryant on x
In a way, the US needed to step in to tackle Facebook's size and power. Without government intervention it had zero motivation*not* to buy up every company it could or clone them out of existence.
@rustybrick Barry Schwartz on x
One way to pay for the COVID cost https://twitter.com/...
@benedictevans Benedict Evans on x
I wrote a long essay in the summer on the logic of breaking up Facebook and Google. The short version: it would make advertising more competitive (and hence be bad for privacy!) but have much less impact on competition in search or social. https://www.ben-evans.com/...
@ldrogen Leigh Drogen on x
Breaking up Facebook is good, but what would be better is forcing all social networks to provide an open API so their social graphs are portable to new startups, that would really be the dagger in facebooks heart https://twitter.com/...
@joannastern Joanna Stern on x
Instagram is spun off, Systrom returns, Reels is deleted from interface, old app icon returns. This is a future I could live with. https://twitter.com/...
@ow @ow on x
Say what you will about doing this so late, but it's painfully obvious that Facebook has a monopoly on social media that is *increasingly* difficult to avoid and asserts massive power/influence globally. Unwinding that wouldn't be bad for anyone (except Facebook, I guess).
@caseynewton Casey Newton on x
Every antitrust case has to define its market, and the FTC argues that “social advertising” is a defined market and that Facebook has a monopoly over it. Expect Facebook to argue that it's just one part of a much larger advertising market. https://twitter.com/...
@martinsfp Martin Sfp Bryant on x
Breaking up Facebook is finally on the cards. But will this just end in a mish-mash compromise where nothing really changes? How much would breaking it up at this stage actually inconvenience consumers? https://www.nytimes.com/...
@broderick Ryan Broderick on x
Unwinding Instagram and Whatsapp would strip Facebook of around 3 billion monthly active users. It would also render them effectively irrelevant with Gen Z and seriously cripple their international reach. https://twitter.com/...
@caseynewton Casey Newton on x
Notably, the FTC's vote to take this case was 3-2. Commissioners Noah Joshua Phillips and Christine S. Wilson, both Trump appointees, voted no.
@jason_kint Jason Kint on x
Reports that this Facebook investigation would be significant and bipartisan, including most of the states, first came out after this meeting last year in NYC. I don't think FB's cover-ups did anything to slow them down. https://www.wsj.com/...
@kurtwagner8 Kurt Wagner on x
“Facebook chose to buy an emerging threat rather than compete,” the FTC says of FB's $19 billion WhatsApp acquisition. It's a good time to read up on WhatsApp, and Facebook's vision to turn it into a payments and commerce powerhouse 👇 https://www.bloomberg.com/... https://twitter…
@kurtwagner8 Kurt Wagner on x
WhatsApp boss Will Cathcart says private messaging has grown so much in recent years it basically replaced actual talking in a lot of instances. Here's an embarrassing story he tells to get the point across... https://twitter.com/...
@ripplo Rich Opara on x
“Instagram and Facebook are the storefront,” says @WhatsApp Chief Operating Officer Matt Idema. “WhatsApp is the cash register.” https://www.bloomberg.com/...
@secretcapital_ @secretcapital_ on x
Great deep-dive into the potential of Whatsapp for Facebook includes: monetization potential, how it fits into consumers' purchasing decisions, payments integration, simularities with Wechat https://www.bloomberg.com/...
@tweetinjules Julie Inman Grant on x
Commercial incentive to move to E2EE? “For Facebook, a company that makes 99% of its revenue from advertising, @WhatsApp presents a chance to diversify its business and protect itself from erosion in enthusiasm for its core social networking apps...WhatsApp is the cash register.”…

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FTC, in coalition with 46 state AGs, plus Guam and DC, sues Facebook, alleging Instagram and WhatsApp acquisitions were used to stifle competition

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