Facebook holds 85% of personal social media market and must be dismantled, FTC says

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Facebook controls 85% of the personal social media market through its Instagram and WhatsApp acquisitions, making it an illegal monopoly that has hurt consumers and competitors, the Federal Trade Commission argued in court documents released Wednesday. .

The commission’s analysis of Facebook user metrics is central to its case for dismantling Facebook.

A federal judge dismissed the commission’s first antitrust lawsuit against Facebook earlier this year, saying the FTC failed to make a convincing argument regarding the company’s dominant market share and unfair monopolistic behavior.

The tech giant’s anti-competitive behavior has hurt the social media market by drastically reducing innovation, quality improvements and consumer choice over advertising and privacy options, the trade commission said in a recently released version of his antitrust complaint against the company.

“Facebook has hindered, suppressed and discouraged the emergence and growth of rival personal social media providers and illegally maintained its monopoly in the US personal social media market by means other than substantive competition,” said the trade commission in his legal file.

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Facebook maintained 85% control of the personal social networking services market from 2012 to 2020, based on the FTC’s analysis of Comscore time spent data.

The analysis showed that even if only half of the time American users spend on Facebook and Instagram was spent on personal social media services, the company would still have retained its dominant share of the market.

The new trade commission complaint also highlights that more than 200 million U.S. users visit Facebook every day, and more than 80% of all U.S. internet users visit the website each month.

“Facebook’s course of action eliminated nascent rivals and extinguished the possibility that the independent existence of these rivals could allow other internet platforms to overcome the substantial barriers to entry that protect Facebook’s monopoly position. “said the trade commission complaint.

By monopolizing the personal social media market, Facebook has particularly deprived advertisers of the benefits of competition, such as lower advertising prices and increased advertising choice, quality and innovation. pointed out the trial.

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The lawsuit also says consumer choices have been curtailed regarding options for protecting data privacy, including, but not limited to, options regarding controversial data collection and usage practices. data from Facebook.

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Key words: News, Politics, Facebook, Big Tech, FTC, Lawsuit, Social Media, Instagram, WhatsApp, Antitrust

Original author: Nihal krishan

Original location: Facebook holds 85% of personal social media market and must be dismantled, FTC says


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