Facebook, while under intense regulatory pressure, is preparing for the worst, but also for upcoming government decisions.
The Wall Street Journal reports that it has obtained a document outlining Facebook’s defense plan in the event that the government orders a “breakup” that would break up Instagram and WhatsApp. According to the report, the social media giant claimed that the breakup would be a “complete dead end” based on employees’ past actions — or lack thereof.
According to the leak , Facebook claims that its acquisitions of Instagram and WhatsApp passed FTC scrutiny without objection, leading it to invest huge sums of money in both projects as it integrated them into its operations. Breaking them up would have required spending billions and running separate systems that reduced security and hurt user experience, Facebook claims.
Facebook declined to comment on the apparent leak. In the past, it has pushed for additional regulation (albeit limited) on the possibility of a breakup.
However, there is no guarantee that such a defense plan will work. Columbia University professor and technology expert Tim Wusaid that citing the FTC would be “weak.” The regulator had not considered the possibility that Facebook was buying Instagram and WhatsApp to eliminate competition, Wu said. He also did not rule out a breakup as circumstances changed, according to Engadget.
Facebook may have to offer some kind of defense, while the FTC is rumored to be preparing an antitrust lawsuit by the end of 2020, and the body could release the results of its antitrust investigation later in October. Of course, they are unlikely to be particularly lenient with Facebook, and such a breakup could easily be on the table.
