A recent FTC antitrust probe into Facebook’s anti-competitive practices is picking up steam as it begins discussions with Facebook’s competitors. Snapchat reportedly has a whole file dedicated to the topic which is titled “Project Voldemort.”
Because the tech world is so new, it’s difficult to apply older antitrust laws against current companies. Instead, we have a few dominant players that seem to monopolize the digital landscape, like Facebook, Google, and Apple. However, some competitors are now aiding prospectors in potentially bringing charges against Facebook for anti-competitive practices.
Snapchat’s Secret File
It’s been revealed that Snapchat is in discussions with the FTC, providing them with information on Facebook’s “hardball tactics.” These alleged anti-competitive practices include discouraging influencers from mentioning Snapchat and preventing Snapchat stores from trending on Instagram. The FTC is in discussions with Snapchat and other ‘Facebook competitors’ about the issue.
Snapchat reportedly has “Project Voldemort” dossier on Facebook’s bad behavior https://t.co/MFF3w7Ugit
— Ars Technica (@arstechnica) September 23, 2019
The antitrust investigation into Facebook began in July on the same day the FTC fined the social media giant for a record $5B. However, it doesn’t stop there. The FTC is also looking at Google and other tech companies with the same criteria, with attorney generals from several states joining to conduct the investigation.
Thus far, neither Snapchat or Facebook have responded to the reported claims.
Facebook Undeterred By Critics
The social media giant seems undeterred by both critics of its privacy policies and its anti-competitive practices. Its CEO, Mark Zuckerberg, recently met with President Trump to discuss how Facebook can best meet regulatory demands. One topic of discussion Facebook’s cryptocurrency plans called ‘Libra.’
It remains to be seen whether or not these antitrust charges will stick. It has been notoriously hard to prosecute tech companies for monopolizing practices. Yet, if they end up being successful against Facebook, that would likely signal a tidal wave of investigations into other tech conglomerates.
As of now, we likely won’t receive more details on specific charges until the end of this year.
Do you agree that Facebook engages in anti-competitive practices? Let us know your thoughts in the comments below.
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