N/APosted on - 01/14/2021
It’s hot on Twitter days ago that Facebook is to break up. Saw the hashtag trending on Twitter about Facebook but forgot to click it. Now, it is gone and don’t know how to search it anymore. Any news about it?
Facebook, Instagram, And WhatsApp To Split Up?
In the business world, this is the usual best option that bigger companies do to smaller ones. Because of the competition in the market, to make the road wider for them, bigger companies tend to buy smaller companies. And then after a while after acquiring what they want in the company they purchased either technology or market position, they either dissolve it or sell it also to other interested investors.
On December 9, 2020, the FTC or Federal Trade Commission together with 48 state attorneys general to call for a court-ordered divestiture of Instagram and WhatsApp. This move forces Facebook to undo the acquisitions to both companies and spin them back into independent companies. The US federal regulators and over 45 state prosecutors sued Facebook.
They accused the social media company of taking illegal actions to buy up rivals and throttle competition. These lawsuits are one of the most important legal actions the United States government has taken against the firm. According to Facebook, the deals that are being scrutinized were approved by regulators years ago. According to Jennifer Newstead, Facebook general counsel:
“The government now wants a do-over, sending a chilling warning to American business that no sale is ever final.”
She said Facebook had invested millions to make WhatsApp and Instagram successful and would “vigorously” defend itself. According to Facebook:
“Antitrust laws exist to protect consumers and promote innovation, not to punish successful businesses.”
The lawsuits filed by the states and FTC are centered on Facebook’s acquisition of Instagram in 2012, WhatsApp in 2014, and rules governing outside software developers.