Facebook Could Be Broken Up

The US Federal Trade Commission (FTC) is pursuing legal action to bring about the disintegration of Facebook and is specifically asking for the sale of Instagram and WhatsApp. 

“Facebook has maintained its monopoly position by buying up companies that present competitive threats and by imposing restrictive policies that unjustifiably hinder actual or potential rivals that Facebook does not or cannot acquire,” the FTC said in the lawsuit which was filed in a US  federal court in Washington.

Facebook is the world’s dominant online social network and more than 3 billion people regularly use Facebook’s services to connect with friends and family and enrich their social lives. 

The FTC filing states that “... But not content with attracting and retaining users through competition on the merits, Facebook has maintained its monopoly position by buying up companies that present competitive threats and by imposing restrictive policies that unjustifiably hinder actual or potential rivals that Facebook does not or cannot acquire.” 

The FTC alleges violation of federal law and attorneys general from 46  federal states have signed up to support the lawsuit

Breaking up platforms is a popular proposal for antitrust action and has been used very effectively in the past, notably the historic disintegration of the monopolist Standard Oil company into five much smaller and separate units, under President Theodore Roosevelt.

A break up of Facebook  might not, however,  be enough to tackle the true source of platforms’ monopolistic power as reducing the company to its separate components of Facebook, Instagram, WhatsApp probably would not change their dominant position in their respective markets. 

Facebook has become dominant because the company has successfully established a network effects and the value its users derive from using the platform increases with the number of other users. The FTC  lawsuit suggests that Facebook used a strategy of neutralising competitors before they could threaten the company's dominance of the social-media market. 

The FTC court filing  draws attention to Facebook's decisions to buy rather than compete with Instagram and WhatsApp  and says that Facebook allege it imposed "anticompetitive conditions" on software developers. It also alleges that Facebook has engaged in illegal patterns of behavior, which both the states and federal investigators have worked together to describe in the complaint.

US Federal Trade Commission:      NBC:         Business Insider:      Open Democracy:     Techcrunch

You Might Also Read:

The Rise and Fall Of America’s Unregulated Internet:

 

« FireEye Attacked By A Foreign Government
US Government Agencies Under Attack »

CyberSecurity Jobsite
Check Point

Directory of Suppliers

MIRACL

MIRACL

MIRACL provides the world’s only single step Multi-Factor Authentication (MFA) which can replace passwords on 100% of mobiles, desktops or even Smart TVs.

NordLayer

NordLayer

NordLayer is an adaptive network access security solution for modern businesses — from the world’s most trusted cybersecurity brand, Nord Security. 

Alvacomm

Alvacomm

Alvacomm offers holistic VIP cybersecurity services, providing comprehensive protection against cyber threats. Our solutions include risk assessment, threat detection, incident response.

CSI Consulting Services

CSI Consulting Services

Get Advice From The Experts: * Training * Penetration Testing * Data Governance * GDPR Compliance. Connecting you to the best in the business.

XYPRO Technology

XYPRO Technology

XYPRO is the market leader in HPE Non-Stop Security, Risk Management and Compliance.

Cleafy

Cleafy

Cleafy are a team of fraud hunters, cybersecurity experts, data scientists, and software engineers. Our purpose is to make people’s life easier and free from the threats in the digital ecosystem.

Deep Instinct

Deep Instinct

Deep Instinct provides comprehensive defense that is designed to protect against the most evasive unknown malware in real-time, across an organization’s endpoints, servers, and mobile devices.

Mantix4

Mantix4

Mantix4’s M4 Cyber Threat Hunting Platform actively defends against cyber threats.

AVL Mobile Security

AVL Mobile Security

AVL Mobile Security is a market-leading mobile security company for anti-virus and threat intelligence in the mobile Internet.

CSO GmbH

CSO GmbH

CSO GmbH provide specialist consultancy services in the area of IT security.

_cyel

_cyel

_cyel is introducing a new cybersecurity strategy: not a new generation of patches and firewalls, but moving target security – we take away the targets. Without replacing your existing system.

Prescient

Prescient

Prescient’s Cyber solutions supplement your firm’s existing data security infrastructure with specialized investigations that identify unconventional cyber risks.

Zen360Consult

Zen360Consult

Zen360Consult provides Advisory and Training services in the field of Cyber Resilience, which includes Cyber Security /ISMS and Business Continuity.

MythX

MythX

MythX is the premier security analysis service for Ethereum smart contracts.

Cybrella

Cybrella

Cybrella offers professional cybersecurity services for small to medium sized businesses and to larger enterprises looking to expand their cybersecurity capabilities.

CyberCatch

CyberCatch

CyberCatch provides an innovative cybersecurity Software-as-a-Service (SaaS) platform designed for SMBs.

Dope Security

Dope Security

Dope Security is a fly-direct Secure Web Gateway that eliminates the data center stopover architecture required by legacy providers, instead performing security directly on the endpoint.

Aim Security

Aim Security

Aim empowers enterprises to unlock the full potential of GenAI technology without compromising security. GenAI makes business better - Aim makes GenAI secure.

SyberFort

SyberFort

SyberFort offers a suite of SAAS-based platforms designed to fortify your digital defenses including Threat Intelligence and Brand Protection.

Skylark

Skylark

Skylark is a leading global IT services provider, transforming client’s businesses through innovative and advanced technology solutions.

Cygence

Cygence

Cygence is a cyber security consultancy providing independent expertise and tailored security solutions.