Facebook is a tech company that continually finds itself in trouble with the government. Ironically, Facebook maintained a benign reputation for years. A data privacy scandal and subsequent fine from the government changed perceptions. The social media company seems to work hard at avoiding controversy, but legal woes don’t appear diminishing. Most recently, the Federal Trade Commission announced a possible injunction against the company due to perceived antitrust matters. reports CNBC.
The FTC has concerns about the ways Facebook’s apps interact. Specifically, the FTC worries about how the apps interact with the company’s competitors. Questions arise about the apps’ violations of antitrust rules. At present, however, the FTC has not taken any specific action. The agency may or may not seek an injunction, but the threat of one surely has Facebook’s management worried.
Facebook’s apps include a multitude of products. The public might not be entirely aware of the company’s numerous acquisitions that include WhatsApp and Instagram.
The new potential crisis follows Congress’ public warnings to Facebook about the company’s planned launch of cryptocurrency assets. Legislators aren’t backing the company’s plans to compete with the U.S. dollar.
Facebook and other “Big Tech” companies currently feel concerns about government actions. Threats of antitrust actions arise with alarming consistency. A feeling exists that the technology companies possess excessive concentrated power, and antitrust actions are warranted. Of course, the tech companies would litigate such actions, and no one knows how the courts would eventually rule.
If enacted, an injunction would ban Facebook from implementing policies regarding app rules for interactions. Facebook refers to the policies as “interoperability” rules. The rules determine how apps interact.
Facebook’s management also likely worries about any public relations fallout from an FTC action. More bad press isn’t something the company wishes to court.
The FTC could decide to drop the matter. If so, then Facebook would dodge a potential crisis.
