Facebook

FTC Considers Blocking Facebook’s Ability To Consolidate Platforms

FTC Could Seek Injunction On Facebook Over Antitrust Issues

Officials at the Federal Trade Commission (FTC) are considering the possibility of a preliminary injunction against Facebook over antitrust issues related to how the social media giant’s apps interact with each other, according to a report by The Wall Street Journal.

The crux of the case would involve Facebook’s policies on the integration of its apps and whether it harms competition with rivals. Facebook owns Instagram, Messenger and WhatsApp.

Action by the FTC would probably involve an order that would force Facebook to stop enforcing its policies regarding apps, as well as blocking it from integrating apps any further, which could complicate things if the company is eventually ordered to break up.

In order to seek an injunction, which would need to be filed in federal court, a majority of the five-member FTC would need to agree to it.

The idea that the FTC would seek an injunction over “interoperability” rules concerning the social media giant has been floating around for some time. The FTC action could happen as soon as next month.

“There are privacy and security advantages to interoperability,” Facebook CEO Mark Zuckerberg wrote in a Facebook post in March. “With the ability to message across our services … you’d be able to send an encrypted message to someone’s phone number in WhatsApp from Messenger.”

Columbia University law professor Tim Wu, who used to be a senior adviser for the FTC, said the injunction would help put the FTC in a strategically beneficial place.

“The advantages are that it gets things moving, and sort of forces things to a judicial decision very quickly,” Wu said, “as opposed to having an antitrust investigation going for five years … The burdens of proof can be higher for the government, but if they’ve got a good case it can be advantageous.”

Wu said he views Facebook’s move to closer integrate its properties as a way to hide its anticompetitive ambitions. 

——————————

WATCH LIVE: MONDAY, JANUARY 18, 2021 AT 12:00 PM (EST)

About: From the online betting sector where one’s physical location at the time of wager is a matter of state law, to banks complying with stringent international Know Your Customer (KYC) regulations, geolocation services are proving a powerful weapon against fraudsters. Curiously, however, new PYMNTS research shows that consumers are more willing to share location data with food-ordering apps than with their own bank’s mobile app. Be part of the discussion as PYMNTS CEO Karen Webster and experts from the geo-data sector talk about the revolution in geolocation data usage, and why banks must take part.

TRENDING RIGHT NOW