Facebook Faces Lawsuits Against Aitrust Policy

Facebook faces US lawsuits that could force sale of Instagram, WhatsApp after the U.S. Federal Trade Commission (FTC) and nearly every U.S. state filed lawsuits against the social media company, saying the deals were unfair and ultimately harmed consumers, according news reportes issued Today.

Meanwhile, The FTC reported that it would seek an injunction that could, among other things, require pestitures of assets, including Instagram and WhatsApp.”

On other hand, Facebook becomes the second big tech company to face a major legal challenge this year after the U.S. Justice Department sued Alphabet Inc’s Google in October, accusing the $1 trillion company of using its market power to fend off rivals.

Moreover, The New York Attorney General Letitia James explained that Facebook, has used its dominance and monopoly power to crush smaller rivals, snuff out competition, all at the expense of everyday users.

James added; ''the company acquired rivals before they could threaten the company’s dominance. Also, he noted that the states will co-operate with the FTC in the litigation process.''

In contrast, Facebook reported that it is reviewing the FTC and state antitrust complaints. Now wants a do-over with no regard for the impact that precedent would have on the broader business community or the people who choose our products every day, Facebook added .

Noteworthy, US technology stocks have largely enjoyed a boom in their market values this year - with investors betting on such companies being immune to COVID-19 disruption. Also, Facebook shares are up by over a third in the year to date, giving it a market cap of $800bn (£600bn).