Facebook has been sued by many states and the federal government for the alleged abuse of its dominance in the digital marketplace and for being engaged in anticompetitive behavior
The Federal Trade Commission seeks a permanent injunction in federal court that demands divestment of FB assets, including Instagram and WhatsApp.
According to the officials, Facebook's monopoly denies consumers the benefits of competition and the company must be checked for its anticompetitive conduct so that innovation and free competition can thrive.
Facebook bought 2 key services in the social media empire in 2012 Instagram for $1 billion, and in 2014 WhatsApp for $19 billion.
Facebook has its dominance and monopoly for more than 10 years and crushes smaller rivals and competitors.
The state suit calls for a court order binding Facebook to notify state officials before buying any existing brand valued at $10 million or more.
Facebook has prepared well to face the music and presented its narrative that Facebook accepts the regulation but this kind of restriction could risk giving other countries like China a competitive edge in the fast-moving technology sector.
Facebook is not the only company to be taken to court by the US and state government officials. Google and Microsoft had been going through the same kind of allegations in the past. Apple and Amazon have also been probed for potentially anticompetitive behavior.
However, the Government will have to prove in court that Facebook's alleged misconduct led to real-world, measurable harms to consumers or competition.
According to the state suit, Facebook's alleged misconduct harms the consumers. Internet users have fewer choices. Moreover, Facebook opens its platform to new app developers and later cut off their access to Facebook's services once Facebook feels them be a competitive threat.
Such cases take years to settle but can greatly impact the market. Experts credit the Microsoft suite for Google's rise.
Similarly, a court decision to breaks up Facebook or to imposes certain behavioral limitations could have made a place for new products for the consumers.
https://www.google.c
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