Report: Facebook will get sued over acquisition of Instagram

Nov 20, 2020

Dunja Djudjic

Dunja Djudjic is a multi-talented artist based in Novi Sad, Serbia. With 15 years of experience as a photographer, she specializes in capturing the beauty of nature, travel, and fine art. In addition to her photography, Dunja also expresses her creativity through writing, embroidery, and jewelry making.

Report: Facebook will get sued over acquisition of Instagram

Nov 20, 2020

Dunja Djudjic

Dunja Djudjic is a multi-talented artist based in Novi Sad, Serbia. With 15 years of experience as a photographer, she specializes in capturing the beauty of nature, travel, and fine art. In addition to her photography, Dunja also expresses her creativity through writing, embroidery, and jewelry making.

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As we all know by now, Instagram is a part of Facebook and it has been like this since 2012. But the historic acquisition could face antitrust charges. According to some reports, Federal and state investigators are about to sue Facebook because its acquisition of Instagram was an attempt to protect itself from the competition.

Back in June, Mark Zuckerberg’s emails leaked, showing that the idea was to improve Facebook, but also to neutralize competition by acquiring Instagram and WhatsApp. Instagram was especially threatening, and it could potentially outgrow Facebook. “Instagram can hurt us meaningfully without becoming a huge business,” Zuckerberg wrote back then. And only a few days later, he made an offer to buy Instagram.

In a July congressional hearing, Zuckerberg claimed that he’d always been clear that Facebook viewed Instagram “as both a competitor and as a complement” to its services. He added that “the acquisition has been wildly successful” and that “it was not a guarantee that Instagram was going to succeed.” He also called Facebook’s acquisition of Instagram “an American success story,” meaning that Facebook was responsible for Instagram’s success.

In an interview with WIRED last year, Columbia Law School professor and antitrust expert Tim Wu explained why Instagram was the most dangerous Facebook’s competitor: “First, it was much stronger on mobile; second, it was better at photo sharing. As a commentator said at the time, Instagram had Facebook’s Achilles heel.” Wu also argued that “Facebook had already destroyed a company like it, MySpace.”

In August this year, Facebook began merging Messenger with Instagram DMs. the integration was expanded further in September when Facebook started testing the feature that lets you see Instagram stories on Facebook.  According to Forbes, these latest integrations have alarmed lawmakers around the world. This source notes that, with all these mergers, it could be harder to break up the company.

The authorities will reportedly argue that Facebook’s acquisition of Instagram and WhatsApp and their messaging integration left users with few quality alternatives. According to Forbes, this could be “the toughest regulatory challenge that Facebook has ever faced.”

[via Forbes]

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Dunja Djudjic

Dunja Djudjic

Dunja Djudjic is a multi-talented artist based in Novi Sad, Serbia. With 15 years of experience as a photographer, she specializes in capturing the beauty of nature, travel, and fine art. In addition to her photography, Dunja also expresses her creativity through writing, embroidery, and jewelry making.

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3 responses to “Report: Facebook will get sued over acquisition of Instagram”

  1. W Douglas LeBlanc Avatar
    W Douglas LeBlanc

    Separation from Facebook would be nice. The algorithm and reach limitations have all but killed any real use of Instagram which is sad. Eleven months of faithful posting and still not yet past the first 1000 followers, what the ever living frick have they done to this platform. No, I’m not paying Facebook to get my content seen. Screw that noise. They want their ads seen, not on the bandwidth that I paid for you’re not. Pay me, then we’ll see what happens.

    1. Tj Ó Seamállaigh Avatar
      Tj Ó Seamállaigh

      As someone who had 1000+ followers before, I tell you, even that is not a grant to pass the mundane level of likes. I would be very lucky nowadays if I get like 20 likes for one image. That’s an achievement right now (some years back, I could well reach 50 and still that was low back then).

  2. Darrell Larose Avatar
    Darrell Larose

    Isn’t that the same concept that MicroSoft et al used, can’t compete buy the opposition?