Facebook facing 'monopoly test' in US

Washington: The US government and 48 States have filed parallel lawsuits against Facebook, accusing the social media giant of anti-competitive conduct by abusing its market power to create a monopoly and crushing smaller competitors.

Soon after the Federal Trade Commission (FTC) and 48 state attorney generals sued the company, Facebook's shares dropped significantly at the stock exchanges. The bipartisan coalition led by New York attorney general Letitia James alleged that Facebook has engaged in a systematic strategy to eliminate threats to its monopoly.

This includes its 2012 acquisition of up-and-coming rival Instagram, its 2014 acquisition of the mobile messaging app WhatsApp and the imposition of anti competitive conditions on software developers.

According to the federal complaint, this course of conduct by Facebook harms competition, leaves consumers with few choices for personal social networking, and deprives advertisers of the benefits of competition.

The lawsuit is seeking a permanent injunction in federal court that could, among other things: require divestitures of assets, including Instagram and WhatsApp; prohibit Facebook from imposing anti-competitive conditions on software developers; and require the social media behemoth to seek prior notice and approval for future mergers and acquisitions. 'Personal social networking is central to the lives of millions of Americans.