US Regulators File Suit Against Facebook over Whatsapp, Instagram Acquisitions

By Staff, Agencies

US federal and state antitrust enforcers filed suit against Facebook on Wednesday claiming the social media giant abused its dominant position with its acquisitions of messaging services Instagram and WhatsApp.

Separate suits filed by the Federal Trade Commission and a coalition of state officials called for the divestment of Instagram and WhatsApp, services which have billions of users and are part of the Facebook "family" of applications.

"Facebook's actions to entrench and maintain its monopoly deny consumers the benefits of competition," said Ian Conner, director of the FTC's Bureau of Competition.

"Our aim is to roll back Facebook's anticompetitive conduct and restore competition so that innovation and free competition can thrive."

A separate legal action was filed by state antitrust enforcers from 48 US states and territories.

The suits allege Facebook sought to squelch competition by acquiring the messaging applications – Instagram in 2012 and WhatsApp in 2014.

The action presages a fierce court battle seeking to force Facebook to divest the apps which have become an increasingly important element of the business model of the California giant and integrated into its technology.

Facebook said it would offer a detailed response after reviewing the cases but added: "Years after the FTC cleared our acquisitions, the government now wants a do-over with no regard for the impact that precedent would have on the broader business community or the people who choose our products every day."