Mark Zuckerberg may have to sell Instagram and WhatsApp, here’s why
A trial over a for the lawsuit against Mark Zuckerberg’s Meta by the US Federal Trade Commission (FTC) over alleged antitrust violations could lead to the tech giant selling Instagram and WhatsApp, as per reports.
The trial – which will begin on Monday – for the suit has that alleged Meta of harming competition by acquiring rivals and avoiding innovation, at the same time maintaining a stranglehold on user data. It can also force Mark Zuckerberg, Ffounder, CEO, and Cchairman of Meta, to divest Instagram and WhatsApp.
In August 2023, Politico reported that the FTC interviewed Facebook CEO Mark Zuckerberg as part of its anti-competition probe into the company.
This, however, would not be Meta and Zuckerberg’s first brush with laws.
In July 2022, Zuckerberg also testified before a US Congress panel in relation to the House Judiciary Committee’'s antitrust investigation into four big tech companies, including Facebook.
The Facebook CEO faced tough questions from the panel on acquisitions of Instagram and WhatsApp.
Meta and antitrust
In 2022, the FTC imposed a record $5 billion fine on Facebook over its ties with the now-defunct political analytics firm Cambridge Analytica and other privacy violations.
In India, the Competition Commission of India (CCI), has directed WhatsApp not to share user data collected on its platform with other Meta products or companies for advertising purposes for a period of five years, after a probe that was initiated in 2021. Meta in response had said that it disagreed with the CCI’s decision and plans to appeal.
The competition watchdog, in its antitrust order related to WhatsApp’s 2021 privacy policy update, also fined Meta ₹213.14 crore for allegedly abusing its dominant position.
South Korea’s antitrust watchdog penalised Meta in March 2024 for allegedly failing to protect local consumers on its e-commerce platforms of Facebook and Instagram.
The investigation primarily focused on Meta’s handling of consumer issues within the Facebook Marketplace and Instagram Marketplace, they added.
These marketplaces allow Facebook and Instagram users to buy and sell new and used products locally. Meta also offers a service to help small businesses create separate business accounts for e-commerce activities.
The South Korean e-commerce law demands e-commerce platform operators provide information about sellers to consumers and establish mechanisms for addressing consumer complaints and disputes.
The FTC alleges that Meta failed to fulfil these obligations as it has not taken enough measures to remedy or prevent consumer damage, including fraud and counterfeit sales on its platforms.
(with inputs from syndicated feed)
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