Zuckerberg’s Meta in dire straits thanks to Instagram and WhatsApp acquisitions
Zuckerberg’s Meta in dire straits thanks to Instagram and WhatsApp acquisitions
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On another day, another big tight drama is heading, as Meta (the parent company of Facebook) is heading to trial this week in Washington.
Dangerous accusations - that Meta has built illegal monopoly in social media through its Instagram and WhatsApp a few years ago. The case is presented by the US Federal Trade Committee (FTC) and focuses on the Meta strategy to buy potential competitors in order to maintain the domination of the market for social platforms. As you know, this is great in the business world.
FTC originally filed the case in 2020 (at the end of Trump's first period). No, it seeks to accelerate some of its most important origins, including the famous Instagram and WhatsApp platforms. According to the agency, the Meta's acquisition strategy was designed to neutralize emerging competitors before they can threaten Facebook.
On the other hand, Meta argues that these acquisitions have benefited from consumers and that the market has since developed, with strong competition from services such as Tiktok and YouTube and Apple.
The chief legal official in Meta criticized the lawsuit as defective and opposite results, claiming that it encourages investing in American technology companies. She also pointed to what she deems as a contradiction in the government's policy, noting that while FTC Meta targets, the arms of other administration focus on "saving" Chinese -owned Tiktok from the previous administration invoice.
Instagram is necessary for meta. | Credit image - Instagram Blog
The trial can have serious effects on the future of Meta, especially since Instagram is able to generate more than half of Meta's ads revenues in the United States. Industry research shows that Instagram brings larger revenues to every user more than any other platform. WhatsApp, although it is not important for revenue yet, has become the largest META application by daily users and is considered a major growth field, especially through custom correspondence tools.
Meta Mark Zuckerberg, including internal discussions on Instagram, is expected to neutralize competition and concerns about the future WhatsApp capabilities. Meanwhile, FTC will argue that platforms like Snapchat and Mewe do not provide meaningful competition in the same Facebook and Instagram space.
Winning in FTC can lead to more measures to determine whether Meta disintegration will restore competitive conditions in this industry.
On another day, another big tight drama is heading, as Meta (the parent company of Facebook) is heading to trial this week in Washington.
Dangerous accusations – that Meta has built illegal monopoly in social media through its Instagram and WhatsApp a few years ago. The case is presented by the US Federal Trade Committee (FTC) and focuses on the Meta strategy to buy potential competitors in order to maintain the domination of the market for social platforms. As you know, this is great in the business world.
FTC originally filed the case in 2020 (at the end of Trump’s first period). No, it seeks to accelerate some of its most important origins, including the famous Instagram and WhatsApp platforms. According to the agency, the Meta’s acquisition strategy was designed to neutralize emerging competitors before they can threaten Facebook.
On the other hand, Meta argues that these acquisitions have benefited from consumers and that the market has since developed, with strong competition from services such as Tiktok and YouTube and Apple.
The chief legal official in Meta criticized the lawsuit as defective and opposite results, claiming that it encourages investing in American technology companies. She also pointed to what she deems as a contradiction in the government’s policy, noting that while FTC Meta targets, the arms of other administration focus on “saving” Chinese -owned Tiktok from the previous administration invoice.
Instagram is necessary for meta. | Credit image – Instagram Blog
The trial can have serious effects on the future of Meta, especially since Instagram is able to generate more than half of Meta’s ads revenues in the United States. Industry research shows that Instagram brings larger revenues to every user more than any other platform. WhatsApp, although it is not important for revenue yet, has become the largest META application by daily users and is considered a major growth field, especially through custom correspondence tools.
Meta Mark Zuckerberg, including internal discussions on Instagram, is expected to neutralize competition and concerns about the future WhatsApp capabilities. Meanwhile, FTC will argue that platforms like Snapchat and Mewe do not provide meaningful competition in the same Facebook and Instagram space.
Winning in FTC can lead to more measures to determine whether Meta disintegration will restore competitive conditions in this industry.
