The US Federal Trade Commission (FTC) and more than 40 states have filed lawsuits against Facebook. Mark Zuckerberg's company is accused of ending the competition. The plaintiffs have appealed for the company to be split in two, but U.S. Consumer Advocates believe the lawsuit against Facebook is weak. Experts say it is difficult for the FTC and state attorney journals to prove the allegations, as the lawsuits filed against Facebook under antitrust laws are complex.
What is the charge on Facebook after all? What does the company have to say on these allegations? How long can this case last? Why are these allegations being said to be politically motivated? Why would it be difficult to prove an accusation? What if the charges are proved?
What's wrong with Facebook?
The biggest allegation against Facebook is that it has strategically bought social media platforms that could be challenging in the future. That's why he bought these platforms at a higher price before they grew, like Facebook bought Instagram in 2012 for Rs 5,332 crore. At the time, Instagram had no revenue and was a company of only 30 employees. Similarly, the company bought WhatsApp in 2014 for Rs 1.65 lakh crore.
The FTC also alleged in its complaint that Facebook bought smaller and newer companies in order to keep Facebook more attractive to users and leave no other competitors.
What does the company have to say on the allegations?
Facebook says antitrust cases from the FTC and the states are currently being reviewed. After the case was filed, Mark Zuckerberg released a memo telling company employees that all the allegations were false. The memo asked not to have an open discussion about the employees' case.
Why are the allegations called politically motivated?
The Donald Trump administration is annoyed with many Silicon Valley companies. When the impeachment was brought against Trump, many Republican lawmakers accused these companies of being biased.
Trump posted a Facebook disclaimer questioning the fairness of the 2020 presidential election. It is also considered against the Trump administration.
How difficult is it to prove an accusation?
Experts say that it will be difficult for the plaintiffs to prove that if Facebook had not bought Instagram and WhatsApp, the social media market would be better today and consumers of the social media market are getting better service.
Second, the regulators who said the merger years ago would be true would find it difficult to prove why they changed their minds. Diana Moss, president of the American Antitrust Institute, told the New York Times that it would be very difficult to substantiate the allegations with the kind of evidence found in the case against Facebook.
What if the allegations are proven?
If the allegations on Facebook are proven, the company will fall into two parts. Facebook will become a separate and separate company linking Instagram-WhatsApp. If these two for-profit social media platforms get out of hand, Facebook's long-term value will end.
Dan Ives, an analyst at Wedbash Securities, says the crash of Facebook will be bad news for investors, as dividends began to arrive shortly after the merger.
Facebook wants to become a famous e-commerce website this year through Instagram and WhatsApp. Instagram earned Rs 1.5 lakh crore in 2019. This will stop Facebook's revenue growth.
How long can this case last?
Antitrust experts say the case could take a year or more to complete, and in a memo issued by Zuckerberg, they say it is the first step in a fight that will last for many years.
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