Facebook must be broken up, the US government says in a groundbreaking lawsuit

Brian Fung

Dozens of states and the federal government sued Facebook on Wednesday in twin antitrust lawsuits, alleging that the social media giant has abused its dominance in the digital marketplace and engaged in anticompetitive behavior.

The Federal Trade Commission, in particular, is seeking a permanent injunction in federal court that could, among other things, require the company to divest assets, including Instagram and WhatsApp, effectively breaking up Facebook as we know it. The states are also calling for the company to be broken up, if necessary.

“Personal social networking is central to the lives of millions of Americans,” said Ian Conner, Director of the FTC’s Bureau of Competition, in a statement. “Facebook’s actions to entrench and maintain its monopoly deny consumers the benefits of competition. Our aim is to roll back Facebook’s anticompetitive conduct and restore competition so that innovation and free competition can thrive.”

The parallel lawsuits, months in the making, represent an unprecedented challenge to one of Silicon Valley’s most powerful corporations. The complaints zero in on Facebook’s acquisition and control over Instagram and WhatsApp, two key services in its social media empire. Facebook announced in 2012 that it was buying Instagram for $1 billion; two years later, it announced a $19 billion acquisition of WhatsApp.

Click here to read more of this CNN Business article by Brian Fung.

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