First, the facts:

  • Significant competition lawsuits against Facebook were thrown Columbia District Federal Court on Monday, which struck regulators ’efforts to curb the power of the social networking giant.
  • The Federal Trade Commission (FTC) and more than 40 state attorneys filed separate lawsuits late last year. claimed that Facebook has grown into a social media monopoly that uses its market position to squeeze or acquire competitors. The complaints forced Facebook to spin off the Instagram and WhatsApp platforms, two acquisitions that previously received regulatory approval.
  • U.S. District Judge James Boasberg wrote in a ruling Monday that the FTC failed to “credibly strengthen” Facebook’s monopoly power. Separately handling of state complaints, Boasberg said it was too long to question the Instagram and WhatsApp acquisitions, which were completed in 2012 and 2014, respectively.

The potential break-up of Facebook – which would change the world of technology and have drastic consequences for advertisers using billions on its platforms – is less likely with the decisions made on Monday. Washington DC federal court rulings believe some industry observers expressed suspicion when the lawsuits were originally filed in December, namely that regulators waited too long to combat Facebook trading and that U.S. competition laws simply do not take into account the ways Internet companies operate.

The FTC lawsuit dismissed by Boasberg as “legally inadequate” is a testament to the challenges of proving that a company like Facebook has excessive influence. The judge disputed allegations that Facebook has a market share of more than 60 percent, which he said was an unsupported claim. He called for the fact that personal social networking services are free to use and sometimes difficult to define, creating a market that is not “ordinary or intuitive”.

The news can be interpreted as a victory for Big Tech, as other companies in the industry, such as Google, tackle their own regulatory collisions. Meanwhile, Facebook has been working unifies its platform at the rear end, which can make it difficult for applications like Instagram to run. Still, the power of Big Tech is likely to remain in the spotlight regardless of Monday’s decisions. The Biden administration has appointed several harsh critics of the industry, most notably Lina Khan was used to lead the FTC earlier this month.

Government control and even advertiser boycotts have not appropriately impeded Facebook’s business. The pandemic-reinforced company made people spend more time on social media, advertising sales increased 46% year-over-year to $ 25.44 billion According to executives, revenue growth in the second quarter would be strong compared to last year, when the outbreak of the COVID-19 crisis led to some advertiser appeals.

Meanwhile, Facebook is battling some of its highest external competitive gimmicks in years. TikTok, a video-sharing platform owned by China’s ByteDance technical group, has claimed to be a favorite app among young consumers who show less popularity on Facebook. Facebook has introduced several features that closely mimic the TikTok user experience, including Instagram Reels, which started showing ads earlier this month.


Please enter your comment!
Please enter your name here