The long-touted antitrust lawsuit against Facebook could happen sooner rather than later if we consider the information provided by sources familiar with the matter.
The US Federal Trade Commission has been preparing a case over the last year. Investigations showed that the giant social media outlet used its market position to eliminate the competition. This inquiry is part of a larger movement started by the US antitrust authorities to see the dominant tech companies' conduct. The ongoing investigation focuses on various past acquisitions Facebook made in the past, such as WhatsApp and Instagram, through which the company might have violated the antitrust laws.
On the other hand, it is possible that the Federal Trade Commission won't bring the case to court despite the preparations. The same thing happened in 2013 when, after extended trials, it didn’t get the antitrust trial against Google to court, but, as seen on Bloomberg.com, the Justice Department is just a few weeks away from suing the company.
For Facebook, this won't be the first antitrust issue. The Australian Competition and Consumer Commission started working on a bill that, if approved, would force tech giants to pay publishers for their content.
Following the news, Facebook closed 2.36% higher, but during today's pre-market session, is trading lower by 1.59%.
Read all about the ACCC's actions here!
Sources: marketwatch.com, Bloomberg.com