Facebook and Instagram don’t have to part ways to increase competition - Reuters said.
U.S. regulators are reviewing the 2012 social media merger, but unwinding deals is almost impossible. "Breaking up what exists today is one option. Forcing technology giants to make switching to rivals easier could be a more productive approach" - Reuters wrote.
According to Reuters, an antitrust showdown is coming for Big Tech. The Department of Justice just sued Alphabet-owned Google over internet search. A congressional report released last month lists a raft of deals, including Google’s 2006 purchase of YouTube for $1.7 billion, that raised competition concerns. Facebook’s $1 billion acquisition of Instagram, which is also mentioned in the report, is part of a Federal Trade Commission probe too.
Facebook’s 2.7 billion monthly active users produce a massive network effect that is a huge barrier to entry for competitors. Requiring open interfaces with other platforms would reduce that obstacle.
According to Reuters, Senator Mark Warner is co-sponsor of a bipartisan bill that would require interoperability and data portability for platforms that have more than 100 million monthly active users.
"Facebook boss Mark Zuckerberg and other Big Tech leaders might come to see it as the least bad of the possible outcomes" - Reuters wrote.
