- A cartel report on Facebook could be released this month.
- Mark Zuckerberg has vowed to fight tooth and nail to prevent the company he founded from being dissolved.
- However, the threats do not prevent Facebook from further integrating its app family.
Facebook is ready to fight any attempt to break it open.
The social media giant’s lawyers have prepared a 14-page document setting out the defense against attempts to separate the main Facebook app from Instagram and WhatsApp.
The Federal Trade Commission and the Antitrust Subcommittee are currently investigating the Mark Zuckerberg-led company for anti-competitive behavior. The House Antitrust Subcommittee is expected to announce its findings later this month.
Facebook believes it shouldn’t be split as its app family is too integrated.
One of the proposed solutions to reduce Facebook’s dominance is to force the social media giant to part with Instagram and WhatsApp. Facebook argues that a divestment would be impossible to achieve Call the move a “complete non-runner”. according to the Wall Street Journal.
Facebook’s defense is weak
The social media giant claims separation would be wasteful because it would have to spend billions on maintaining separate systems. According to Facebook, this would weaken security and affect the user experience.
Based on the 14-page document, Facebook’s arguments are weak. You seem to be missing the whole point of antitrust enforcement, which is to improve the playing field. Facebook currently has over two billion users worldwide. Instagram, Messenger and WhatsApp each have over a billion users.
To make matters worse, Zuckerberg has stated that its acquisitions are designed to prevent rivals from becoming future competitors. Before buying Instagram, he said the point of buying the app was “to neutralize a competitor”.
Zuck is preparing for a fight
When antitrust authorities finally propose a split, expect a hefty legal backlash from Facebook.
In a leaked conversation with staff at a Facebook town hall meeting last year, Zuckerberg swore the Risk of company dissolution would not be taken lightly:
… when someone tries to threaten something so existential, you get on the mat and fight.
Mark Zuckerberg throws a curveball
Interestingly, in the face of increasing antitrust investigations, Facebook is doing everything in its power to make a possible separation difficult. Some of the key steps in integrating the app family have only accelerated in the past few days.
For example, functionality was introduced last week Allow Instagram users to send direct messages to Messenger without needing a Facebook account. The same functionality will be made available for WhatsApp shortly.
Not only does this increase the stickiness of Facebook products, but it also helps the company keep growing the user base on WhatsApp and Instagram, which are not perceived as negatively as the main app.
For Facebook to do this during an antitrust investigation is ruthless – or an inexplicable trust that it will not be resolved.
Given the many unsuccessful campaigns against Facebook, such as asking users to delete the app or Advertisers to boycott itIt wouldn’t be a surprise if the social media giant gets away with it all over again.
Disclaimer: The opinions expressed in this article do not necessarily reflect the views of CCN.com and should not be regarded as investment or trading advice to CCN.com. Unless otherwise stated, the author has no position in any of the securities mentioned.