Facebook Sued! Alleged To Be A Monopoly By The FTC!
In what can only be seen as a groundbreaking lawsuit, Facebook has been sued as a result of its designation as a monopoly by the Federal Trade Commission (FTC) and must be broken up. Not since the break up of the Bell System ordered on January 8, 1982, has there been such a shake up in the communication world. Furthering this is the insight that this is the first (and some wonder if more will follow) move by the FTC against a social media entity.
What Got Them On The FTC Radar
With Facebook’s many acquisitions including Instagram (2012 for $1 Billion) and WhatsApp (2014 for $19 Billion), it became a target of twin antitrust lawsuits by several states and the federal government. The FTC alleging that “Facebook entered into an anti-competitive course of conduct to illegally maintain its monopoly position in personal social networking.”
“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.”
For business owners and companies who have used Facebook as a strategic advertising tool, it is left to wonder, what do we do now? In a time where Covid-19 has severely hindered retail sales, many business owners have become dependent on social media marketing via Facebook to boost online sales.
For social users, especially senior adults, the social media platform represents their primary means of staying connected, especially in our present pandemic crisis. Still some followers are applauding the FTC’s decision, reflected in the most recent migration to Parler in response to what many consider Facebook’s sharing of their personal information and denial of their right to free speech.
Facebook Sued – Where To Now?
“With this astounding breaking news, you may be asking ‘what should I do?’,” shares Bonnie Mauldin, CEO and Managing Director of The Mauldin Group.
“My first response is don’t panic, this lawsuit will definitely be challenged-meaning it will be quite awhile before any changes take place. However, it may be a good idea to take a proactive approach and look at your Facebook Paid Ads, and overall social media marketing.”
Still with 2.60 BILLION active monthly users, it is left to wonder what a breakup of Facebook could mean to those who use it as a primary social communication tool. While Zuckerberg appears to have known this was coming for some time and in a previous employee meeting shared that he will “fight to the mat,” one thing appears certain, there will be a lot of interest in this history making lawsuit.
To learn more about the FTC’s decision, READ MORE NOW…
Are you a business wondering how the FTC’s lawsuit with Facebook could affect your presence? Let us hear from you! Visit Us on our Facebook Page.