The United States Federal Trade Commission has decided to sue for the break-up of social-media giant Facebook. Attorney generals from 48 states are also filing their own lawsuits for the breakup of Facebook. The plaintiffs claim that the social-media company is now so powerful that it requires government oversight and to be properly regulated. It is also alleged that the company has took part in monopolistic and uncompetitive practices by buying up smaller social-media firms and potential competitors, including messaging apps and platforms such as Instagram.
It follows years of complaints against Facebook that the site has monopolised advertising, taken vast swathes of people's personal data, and allowed fake-news and political extremist content to be dispersed through the social media community. This it is claimed has even had huge ramifications for democracy and fair elections.
"Facebook has maintained its monopoly position by buying up companies that present competitive threats and by imposing restrictive policies that unjustifiably hinder actual or potential rivals that Facebook does not or cannot acquire."
Facebook responding to the legal proceedings by saying:
"Years after the FTC cleared our acquisitions, the government now wants a do-over with no regard for the impact that precedent would have on the broader business community or the people who choose our products every day."
In effect, Facebook is claiming that if the company is broken down or regulated, it will mean that no company in the future can be sure of buying up other companies or acting in a way that expands their business because the government can later come and retroactively void these legal business agreements. Therefore, such actions are bad for all businesses in the United States.
New York Attorney General, Letitia James, who is part of the states' lawsuit, said:
"By using its vast troves of data and money, Facebook has squashed or hindered what the company perceived as threats. It also sent a clear message to the industry: Don't step on Facebook's turf."
Facebook has already previously paid $5 billion to end an FTC investigation into the company's privacy practices, including how they manage the data that they garner from users. Never in history has a company had such an in-depth knowledge of individuals and their habits, which while making it a fantastic tool for advertisers, also makes it highly-prized by those who may wish to use that data maliciously.
The news of the lawsuits has already led to Facebook shares falling by 4 per cent. Many of those who invested in Facebook when it was just beginning in the late 2000s have become extremely wealthy as a result of their earlier investments, including CEO and founder Mark Zuckerberg, who is now one of the world's richest people.
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