FTC Continues With Monopoly Charges Against Meta
Meta Platforms is embroiled in a major antitrust trial, with CEO Mark Zuckerberg answering to the U.S. Federal Trade Commission (FTC) on monopolistic charges. Details from U.S. media are that Zuckerberg tried to settle the issue prior to the trial.
Settlement Proposal Rejected by FTC
As per these reports, Zuckerberg made a settlement proposal to FTC Chairman Andrew Ferguson. The opening bid was $450 million, which was upped to $1 billion (approximately ₹8,569 crore). Still, the FTC rejected the offer. The agency reportedly wanted $30 billion in compensation and would not accept any offer below $18 billion. The move reflects Meta's strong move to steer clear of court hearings.
Acquisitions of Instagram and WhatsApp Under Scrutiny
The FTC has accused Meta of following a calculated strategy to quash competition by buying platforms such as Instagram and WhatsApp. Citing in-house communication, the FTC referred to an email from Zuckerberg, implying it was worth buying competing apps instead of competing with them in the market.
Meta Responds to Monopoly Accusations
In its legal defense, Meta contended that its investments played a pivotal role in making the acquired platforms successful. The company highlighted the fact that, without its participation, Instagram and WhatsApp would never have reached the popularity level at which they exist today. In case the trial ends in a verdict against Meta, the decision could result in a forced sale of these platforms. At the moment, Instagram accounts for close to 50% of Meta's overall revenue, which signifies the magnitude of potential impact.
Trump's Legal Dispute with Meta Resolved
In a side development, Donald Trump's accounts on various Meta platforms were suspended in 2021 following the Capitol riots. The accounts were reinstated in 2023. Trump sued Meta, whose case was resolved recently. The reports indicate Zuckerberg was expecting support from Trump during the current antitrust case and even asked for his assistance with the case.
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