In the US, the Consumer Safety Regulator (FTC) has filed a case under the Landmark Antitrust Act on Facebook, led by Mark Zuckerberg. Facebook has been accused of abusing power to eliminate market competition. Facebook shares declined as much as 4% when the FTC and attorney generals from 48 states began trial proceedings on Wednesday. Facebook shares have risen by more than 35% in 2020.
Facebook has alleged that it wants to establish its monopoly in the world of social networking by buying rivals. The purchase of the photo-sharing app Instagram in 2012 for Rs 5,362 crore and the purchase of WhatsApp for Rs 1.65 lakh crore in 2014 suggest that the company wants to establish dominance. The petition said that even before the matter of these deals came before the regulators, then these deals were proposed, but later it was found that these deals are a threat to the healthy competition of the market. Now the FTC wants Facebook to split the business into two.
This is an idea that threatens the survival of the social media empire created by Facebook CEO Mark Zuckerberg. The reason for this is that the company’s revenue is increasing from Instagram and WhatsApp and Facebook is venturing into digital commerce on its own. If these two profitable social media platforms get out of hand, the long-term value of Facebook will end.
Wedbush Securities analyst Dan Ives says Facebook’s breakdown would be bad news for investors, as dividends had just begun to come after the merger. Facebook wants to become a veteran of e-commerce this year by making Instagram and WhatsApp a medium, which is now less likely. Instagram earned one and a half lakh crores in 2019. Experts believe that Facebook’s revenue growth will stop now. However, the matter is still pending before the court.
Data privacy breach in France, Google fined Rs 890 crore
France has fined Google 890 crore rupees. This is the largest fine ever on Google. The fine has been imposed for violations of France’s online advertising trackers (cookies) rules. E-commerce giant Amazon has also been fined Rs 311 crore. The French regulator found that Google’s French website and Amazon had not obtained people’s approval to save advertising cookies on the computer.