F.T.C. Is Said to Consider an Injunction Against Facebook


SAN FRANCISCO — The Federal Trade Commission is contemplating searching for a preliminary injunction towards Facebook to forestall the social community from integrating a number of of its messaging companies, in accordance to three individuals with data of the matter.

The company has mentioned how the Silicon Valley firm is stitching collectively the technical infrastructure underlying WhatsApp, Instagram and Facebook Messenger, mentioned the individuals, who spoke on the situation of anonymity as a result of the talks are confidential.

The F.T.C. is weighing whether or not such an integration would make it tougher to probably break up Facebook, they mentioned, particularly if the company determines that the corporate’s acquisitions of a few of these apps lowered competitors in social networking. The company has not made a ultimate choice about what to do, the individuals mentioned.

The F.T.C. and Facebook declined to remark. The potential injunction was reported earlier by The Wall Street Journal.

The F.T.C. discussed seeking an injunction after Mark Zuckerberg, Facebook’s chief executive, disclosed he was working to unify the technical systems of WhatsApp, Instagram and Facebook Messenger. The integration would allow Facebook’s more than 2.7 billion users to communicate across the platforms, so messages sent through WhatsApp could be received by users who have Facebook accounts and forwarded, in turn, to people on Instagram.

In March, Mr. Zuckerberg said he was trying to unify the apps so that people could engage more easily in private and encrypted communications.

“We’re building a foundation for social communication aligned with the direction people increasingly care about: messaging each other privately,” he said in an interview at the time. “I believe a privacy-focused communications platform will become even more important than today’s open platforms.”

But regulators and lawmakers have been concerned that the moves may make it more difficult to disentangle the apps in the future.

In practice, the back-end infrastructure of many Facebook properties has been shared for some time. Facebook and Instagram both use the same architecture to run their advertising businesses, for example.

If the F.T.C. thinks “that there is any plausible case for challenging previous transactions,” said Gene Kimmelman, a former Department of Justice antitrust official, “seeking an injunction to prevent integration is critical because otherwise they mix the assets together.”

“It’s a little bit like scrambling an egg,” added Mr. Kimmelman, now a senior adviser at the consumer group Public Knowledge.

Facebook announced that it was buying Instagram, a photo-sharing app with only a baker’s dozen full-time employees, for $1 billion in 2012. The app quickly swelled to more than one billion users and is now widely seen as the crown jewel of the Facebook empire.

Mr. Zuckerberg made another audacious bet in 2014 with the $22 billion purchase of WhatsApp, an app that sends text, video and photo messages. WhatsApp is especially popular internationally. Wall Street analysts have said the app, which brings in little revenue, could become a big moneymaker.

Both deals were approved by the F.T.C.

Joseph Simons, the agency’s chairman, has recently said it is open to breaking up big tech companies but has also highlighted the challenges of unwinding mergers of the firms. He has publicly said Facebook’s plan to integrate its apps would pose challenges if regulators wanted to split up the social network.

The F.T.C. has previously faced criticism over whether it has acted aggressively enough against big tech companies.

In July, the agency announced a record $5 billion fine against Facebook to settle privacy violations with users’ data. But Democratic lawmakers and consumer groups said the action was inadequate and would not deter the company from harming users because the agreement did not force changes to social network’s core business of collecting data for targeted advertising.

Mike Isaac reported from San Francisco, and Cecilia Kang from Washington. Jack Nicas contributed reporting from San Francisco, and David McCabe from Washington.



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