Facebook parent company Meta has asked a federal judge to halt an investigation by the US competition authority FTC, which could force Meta to sell Instagram and WhatsApp. The consumer protection agency FTC (Federal Trade Commission) started the investigation in December 2020 after Facebook acquired the online network Instagram and the messaging service WhatsApp. According to the FTC, Meta wanted to eliminate competition.
In its request to stop the investigation, the technology group states that the two acquisitions are “positive for consumers and companies”. Moreover, the FTC gave its approval after several years of evaluation. If an investigation procedure were to be carried out, it would amount to sending the message “that no takeover is ever final”, Meta said.
The dispute has been going on for years
The legal dispute over the acquisition of Instagram and WhatsApp by parent company Facebook has been going on for years. In June 2021, a judge halted the first testing procedure. The FTC then initiated new proceedings in August 2021, which Meta was unable to enforce.
The FTC now has until May 30 to present its arguments for continuing the review process to a federal judge. A date for a hearing has not yet been announced.
If the FTC successfully takes action against the expansion of the Facebook empire, it could permanently change the online services market, especially if the Meta Group is broken up. In the fight against market monopolies, the FTC and the US Department of Justice have filed a number of cases against tech giants in recent years, for example against Google for its dominant position as a search engine. A judge is expected to rule in this case at the end of this year.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
