Facebook, Federal Trade Commission, FTC discussed on The Journal.
So my question is male Polish. Some of and names are absolutely ridiculous. I'm Flora Lichtman from every little little things the podcasts that answers your burning questions like who names nail Polish I come up out of surgery anesthesia and the nurses drilling me on what my God. What Am I? Nail Polish Keller is find out more on every little thing. Listen on spotify or wherever. You get your podcasts. Welcome back as facebook executives in California push ahead ahead with their plan. The company is dealing with a significant challenge across the country in Washington. DC This summer. facebook disclosed that it was under investigation. Asian by the Federal Trade Commission for possible antitrust violations. The bigger argument around all of this is around anticompetitive practices. You know is facebook's facebook's enormous resources and sharp elbow tactics have they squashed competition before. It could get started in earnest road because the biggest fastest asas rising companies. What's happened instagram or are part of the facebook family now and other startups like snapchat? Have you know they're surviving. But they're not nearly as dominant absolutely. It's hard to compete with facebook. FACEBOOK denies that it hindered competition in the tech industry. It says that instagram Graham and WHATSAPP were much. Smaller had no revenue when they were purchased. facebook help them grow and the company says it shouldn't be punished for success. Not everyone agrees with that logic. There is a rising group of critics and economists and lawmakers lawmakers who think maybe the solution is facebook should break up and so there is. This groundswell of debate happening around antitrust rest are these companies to big has facebook bought up to many of its competitors has welched. The competition too much disrupted the landscape made it impossible possible for them to have a challenger and therefore to compete on issues like privacy. FACEBOOK have too much power and so these conversations as with each controversy that facebook is enduring. This conversation around should these companies be broken up is getting louder and louder So now bring us up to what we learned last week with the Federal Trade Commission. What is this possibility that they might put an injunction in place that could potentially stop facebook from from moving forward with this interoperability plan? What does that tell us about where this investigation is headed? So last week there was an additional update. The FTC is considering this preliminary injunction that would prevent facebook from stitching all these different APPS together. That's according to people people familiar with the matter and this may not happen the FTC may choose not to make this move but the fact that is under consideration is pretty incredible because facebook has has been working on this for about a year facebook as applying a lot of engineering resources to it and trying to make it happen and the idea the at the FTC might stop that work which is complicated. Work that mark says is a part of his vision for social networking. It really speaks to how different the environment is around facebook these days because this is a company that is built on Mark's ambition. It's a company that is built on his ideas for where the future of communication will go and he has an uncanny knack for predicting that correctly or at least forcing his vision vision to come true through his enormous platform and the FTC preliminary injunction would halt that vision. It would prevent him from being able to see through his vision in a Broadway. What would happen to the investigation? The antitrust investigation if Zuckerberg were to succeed in integrating the companies if you take it from the critic standpoint and there are a lot of facebook critics out there that say this it would make it very hard to break these companies up. is they become more integrated. The lines are a little bit more blurred word. Suddenly these companies are sharing all this information and sharing these assets becomes much harder to tease out. What is part of facebook and what is not and it makes it harder than to take these companies and split them? Apart because they share such critical infrastructure they already share and adds infrastructure which is enormously critical so this is adding another layer of messaging. It just makes the idea of a break-up much messier the remedy becomes less clear. It seems like the government has sort of increasing creasing. Its own leverage by keeping a break-up at least on the table yeah if they're move forward with this junction. Yeah it's a pretty extraordinary move. What does facebook said about the any trump investigation in general? When it comes to anti-trust they disagree? They don't think they should be broken up but they have said repeatedly elite that they would be open to more regulation. I think at this point Zuckerberg has said publicly at a certain point. We do need to be regulated because the current situation cannot stand passed some laws that we can follow so we could stop this relentless stream of criticism and get on with the business the day facebook also said that the three apps are already heavily integrated and then it's moved to stitch the messaging functions together has nothing to do with any trust trust. The company says it's all about making the APPS better for consumers. What do you think is going to happen next? It's unusual consideration from the FTC. Given that they rarely break-up companies and so we're going to have to see if they make this move it's a pretty significant one as as we understand it. They're trying to understand as much as they can about the company and about the way it works and the way that it treats the competition in an the acquisitions it makes so there in fact finding mode but what this consideration of the preliminary injunction suggests that they've learned enough about the way a facebook functions to see the idea of integrating all these different APPs as a potential roadblock to a remedy mm-hmm what that basically means is that project that's been underway at facebook for a year. Now is at risk. It means that it facebook might need to stop that work which the company had considered to be a big part of its future now if the FTC decides to make this move move it's pretty significant.