Stock Plunges After Hours
Facebook stock was down over 4% in after hours trading after the WSJ reported the social media company would face an anti-trust suit by year end.
The report reveals that the FTC has spent more than a year investigating concerns that Facebook “has been using its powerful market position to stifle competition” and may file a suit before the end of the year to challenge the company’s monopoly in social media. The inquiry is part of a broader antitrust effort by authorities examining the conduct of a handful of dominant tech companies.
The WSJ reports that the probe, which is in its late stages and which was previously discloses by the company last year, included taking testimony from Mark Zuckerberg, something the commission didn’t do during a prior probe of the company’s privacy practices, and which resulted in a record-breaking $5 billion settlement. In other words, this time around either the monetary penalty will be materially higher, or the FTC may in fact pull a Standard Oil on Facebook, and split up the company, reported Zero Hedge.
President Trump and AG Barr have made it clear they are going after Silicon Valley monopolies in Trump’s second term. The fact that Twitter today suspended the account of a Chinese defector who has evidence the Chinese coronavirus was made in a Chinese military bio lab, speaks volumes about the need for these companies to be knocked down to size.