According to the financial reports on stock prices, Facebook is threatened by a drop in stock market prices due to the lawsuit. Namely, The Federal Trade Commission (FTC) along with other 48 states/territory attorneys general filed a pair of antitrust lawsuits against the social media giant asking that Facebook be broken up. The antitrust lawsuits suggest that Facebook has been placing acquisitions of other social media in the past in order to eliminate competition. Let us consider the history of the expansion of this social network and its involvement in the creation of public opinion.
In 2012, Facebook bought Instagram for the amount of $1 billion to neutralize the threat from Instagram competing with it and also make other social media platforms less able to compete with it and acquire economies of scale.
Likewise, Facebook is being sued by FTC, supporting that when Facebook acquired WhatsApp in 2014 for $19 billion it had the same intentions. WhatsApp was nominated in 2012, as the global leader in messaging applications, which is why Facebook chose to buy it in order to avoid competing with it. The federal government is calling out to reverse these deals.
Everything in the service of domination and suppression of competition, and even the opinions of others. Fact-checkers are only objective reviewers and evaluators of what is written or a transitional solution to a greater and more extensive influence on public opinion remains to be seen.
Facebook has tried to acquire other famous social media businesses like Twitter and Snapchat.
Facebook didn’t react to this as expected, in fact, they said they will review the complaints and reply to this soon. FTC has been examining our acquisitions for years and now the government steps in and asks for a reversal of the deals. The government is clearly not thinking of the impact this could cause on the people that choose us every day nor they care about the general impact this will have on the business sector and community”.
Letitia James says Facebook has used its monopoly power to crush smaller social media rivals and extinguish competition. Instead of improving its own product it took advantage of other companies’ products to make money on consumers and made billions of dollars converting their personal data into a cash flow. Moreover, FTC says, Facebook has used a systematic strategy over the years but now it’s time to change and improve future acquisitions.