Facebook may lose Whatsapp, Instagram; here is the reason

The US Federal Trade Commission has filed a lawsuit against the current owner of Whatsapp and Instagram, and nearly all states are against the control of Facebook over two social networking platforms.

The strategic acquisition of two social networking platforms violates the rules of competition, says the plaintiff in the lawsuit.

“For nearly a decade, Facebook has used its dominance and monopoly power to crush smaller rivals and stifle competition, all at the expense of ordinary users,” New York Attorney General Letitia James said on behalf of the coalition of 46 states.

Facebook had acquired Instagram after paying $1billion in 2012, while the social media giant took control over the messaging app Whatsapp by paying $19 billion in 2014.

The FTC had approved the deals when Facebook took over Instagram and Whatsapp.

This fact may have an apparent impact on proceeding against the owner of two social networking platforms.

Jennifer Newstead, the general counsel of Facebook, has termed the lawsuit against ownership as a “revisionist history.”

According to her observation, Whatsapp and Instagram are now successful after an investment worth billions of dollars was made by Facebook.