Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

U.S. regulator weighs action against Facebook over how its apps interact

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/12/2019 | 09:27pm EST
FILE PHOTO: Facebook logos

The U.S. Federal Trade Commission is considering asking a court to stop Facebook Inc from moving ahead with plans to integrate its WhatsApp, Instagram and Messenger subsidiaries, The Wall Street Journal reported on Thursday, citing people familiar with the matter.

Facebook shares closed 2.7% lower, reflecting fears the potential regulatory move could be a first step toward forcing the company to sell apps WhatsApp and Instagram, its fast-growing acquisitions.

Facebook has plans to allow users of its units Messenger, WhatsApp and the direct messaging system within Instagram to communicate with each other, and end-to-end encryption will be extended across the three services.

A source familiar with the matter said the FTC has not asked Facebook to halt the integration, a step that would normally precede a legal challenge. The Wall Street Journal said the FTC could file for an injunction to halt the integration as early as January.

Apart from antitrust concerns, Facebook and other tech giants are facing criticism over privacy lapses, how they handle vast quantities of consumer data, and accusations of bias in the polarized U.S. political environment.

Facebook and the FTC declined to comment.

Chief Executive Mark Zuckerberg announced plans in March to integrate Facebook's messaging services as part of a proposed shift toward more private forms of social networking.

Zuckerberg's integration strategy reflects the importance of Instagram and WhatsApp as Facebook's flagship app struggles to attract new young users in the company's most lucrative markets.

Instagram ads drive much of Facebook's revenue growth, while the company is slowly moving toward making money from WhatsApp, which has surged to a user base of 1.5 billion people since its $22 billion acquisition in 2014.

The properties are already integrated to some degree, with users able to link their accounts and advertisers able to use one system to place ads across different platforms.

Encrypting messaging systems will restrict Facebook's ability to see the content of users' messages, but the company has not divulged whether the integration plan may deepen other types of data sharing between the units.

Facebook, Alphabet Inc's Google, Amazon.com Inc and Apple Inc all face antitrust investigations by the Justice Department and House of Representatives Judiciary Committee.

The FTC was also known to be investigating Facebook while groups of state attorneys general are looking at Facebook and Google.

U.S. Attorney General William Barr said on Tuesday he hoped to have Justice Department investigations of the big tech platforms completed next year.

Barr said the Justice Department review was not limited to antitrust, but that looking for anti-competitive behavior was "front and center."

(Reporting by Ayanti Bera in Bengaluru, Katie Paul in California and Diane Bartz in Washington; Editing by Shailesh Kuber, Leslie Adler and Richard Chang)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
04:56pISABEL DOS SANTOS : Portuguese authorities probe Angola leaks, Eurobic bank distances itself from dos Santos
RE
04:45pCanadian dollar strengthens as higher oil prices support
RE
04:40pOil rises as Libya declares force majeure in oilfields
RE
04:39pTEEKAY LNG PARTNERS L P : January 20, 2020 Teekay LNG Partners Declares Distribution
PU
04:33pBLOCKCHAIN : Early Warning Report Filed in Connection With a PSU Grant
AQ
04:29pBHP : Operational Review for the Year Ended 31 December 2019
PU
04:22pU.S. Agriculture Secretary says no need for more farm aid after China trade deal
RE
04:21pTSX rises 0.22% to 17,597.39
RE
04:16pNEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
03:59pBoeing seeks to borrow $10 billion or more amid 737 MAX crisis
RE
Latest news "Economy & Forex"