The Strategist

WSJ: Facebook considers splitting "a dead aim"

10/06/2020 - 03:59

Attempts by the U.S. government to split Facebook Inc. from WhatsApp and Instagram will violate existing legislation, worth billions and harm users, states a paper by the company's lawyers composed to prepare for rising legal risks.
The paper, read by WSJ, announces protection measures to which the company may resort. At that, the US watchdogs and Congress members keep examining former activities of Facebook.

The Antitrust Subcommittee of the U.S. House of Representatives will publish its investigation's findings in relation to Facebook and other firms later this fall.

The document was composed by employees of Facebook based on a paper by lawyers of Sidley Austin LLP. It provides insight into what Facebook could do to protect itself from possible lawsuits.

Facebook's acquisition of WhatsApp (2014) and Instagram (2012) was reviewed by the U.S. Federal Trade Commission (FTC), but no objections were raised. The company has poured massive investitions to enhance development of the platforms, and many operations there are now integrated. 

In its paper, Facebook stresses that it s almost impossible to separate these assets because the company then will have to pay billions to weaken security, keep the systems separate and degrade user experience.

"Thus, the 'separation' of Facebook is a completely dead aim," the report states.


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