Skip to main content

Market Overview

FTC, 46 States Unveil Suit Against Facebook Aimed At Forcing Sale Of Instagram, WhatsApp

FTC, 46 States Unveil Suit Against Facebook Aimed At Forcing Sale Of Instagram, WhatsApp

Facebook Inc (NASDAQ: FB) may have to part with crown jewels WhatsApp and Instagram after the United States Federal Trade Commission and almost all states sued the social media giant for extinguishing competition, Reuters reported Wednesday.

What Happened: The two lawsuits accuse the Mark Zuckerberg-led company of buying competing rivals — specifically Instagram for $1 billion in 2012 and WhatsApp for $19 billion in 2014, according to Reuters.

Federal and state prosecutors are reportedly asking that these acquisitions, okayed by the FTC earlier, be undone.

“For nearly a decade, Facebook has used its dominance and monopoly power to crush smaller rivals, snuff out competition, all at the expense of everyday users,” said New York Attorney General Letitia James.

Why It Matters: A coalition of 46 states along with Washington D.C. and Guam is participating in the legal action against the Menlo Park, California-based social media giant, noted Reuters.

Alabama, Georgia, and South Dakota are not parties to the lawsuit. There is a broad bipartisan consensus on the break up of tech giants like Facebook and Google parent Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG).

See Also: Facebook, Amazon, Apple, Google Stamping Out Rivals, Stifling Innovation, House Antitrust Investigation Concludes

In October, the Department of Justice filed against Alphabet alleging anti-competitive practices. 

Price Action: Facebook shares closed nearly 1.9% lower at $277.92 on Wednesday and fell almost 0.3% in the after-hours session.


Related Articles (FB)

View Comments and Join the Discussion!

Posted-In: Antitrust big techGovernment News Regulations Legal Tech Media Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at