FTCVerified account

Complaint alleges FB engaged in a systematic strategy—including its 2012 acquisition of Instagram, its 2014 acquisition of WhatsApp and the imposition of anticompetitive conditions on software developers—to eliminate threats to its monopoly: https://go.usa.gov/xAqQM  2/12

FTC is seeking a perm. injunction in court that could, among other things: req FB to divest assets, incl Instagram & WhatsApp; prohibit FB from imposing anticompetitive conditions on software developers & req. FB to seek prior notice/approval for future mergers/acquisitions 3/12

According to the complaint, FB is the world’s dominant personal social networking service and has monopoly power in a market for personal social networking services 4/12

Its unmatched position has provided FB with staggering profits. Last year alone, FB generated revenues of more than $70B and profits of more than $18.5B, according to the complaint 5/12

Complaint alleges that Facebook execs, including CEO Mark Zuckerberg, quickly recognized that Instagram was a vibrant and innovative personal social network and an existential threat to FB’s monopoly power 6/12

Complaint alleges that, by 2012, WhatsApp had emerged as the clear global “category leader” in mobile messaging. FB chose to buy an emerging threat rather than compete & announced an agreement in Feb. 2014 to acquire WhatsApp for $19B, according to the complaint 7/12

FTC alleges that FB, over many years, has imposed anticompetitive conditions on third-party software developers’ access to valuable interconnections to its platform, such as the APIs that allow the developers’ apps to interface with FB 8/12

FB allegedly has made key APIs available to third-party applications only on the condition that they refrain from developing competing functionalities, and from connecting with or promoting other social networking services 9/12