“Wow”: several American journalists specializing in “technology” did not hide their surprise, even their excitement, on Twitter, at the announcement of the complaints filed Wednesday, December 9 against Facebook by the Federal Trade Commission (FTC) and a coalition of 48 states. Indeed, these two procedures for obstructing competition ask the courts to force the leader of social networks to separate from Instagram and WhatsApp, two services bought in 2012 and 2014 for 1 and 19 billion dollars.
The specter of the “dismantling” of Facebook – or of Google, Apple and Amazon – has long been hanging over the debates around the digital giants. Such a division was mentioned in early 2019 by the candidate for the Democratic nomination Elizabeth Warren and, in October 2019, by a report by the Democrats of the Antitrust Committee of the House of Representatives. But that prospect seemed quite remote.
Complaints rekindle debate. “For nearly a decade, Facebook has used its monopoly to crush rivals, stifle competition, all to the detriment of users”, New York Attorney General Letitia James, who leads the coalition of states, explained. In addition to Instagram and WhatsApp buyouts, Facebook is criticized for having “Imposed anti-competitive conditions” third-party application developers: after opening access to its platform in order to gain users, Facebook closed it for certain services deemed to be competitive, such as the application of videos Vine, denounced Mr.me James.
“Serious challenge”
The FTC and states are asking the District of Columbia federal court to force Facebook to sell Instagram, WhatsApp, or both, in order to create one or more competing entities. The authorities also want to put an end to anti-competitive practices. And force Facebook to notify any buyback over $ 10 million. “The argument developed is fairly straightforward. These procedures will represent a very serious challenge for Facebook ”, says William Kovacic, an FTC alumnus turned law professor at George Washington University in Washington.
The complaints cite in particular internal documents obtained in the investigation. Instagram’s development could be “Very disturbing” for Facebook, its founder, Mark Zuckerberg, estimated in a message in 2012. Buy Instagram “Allows us to save time”, he explained in an email to his CFO. To an employee who asked him if it was necessary to acquire this platform to “Neutralize a competitor, acquire talents, integrate products or for another reason”, the CEO replied: “The first and the third reason. “
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