Thursday, January 13, 2022

Facebook has proactively proposed to help build a new social network to circumvent antitrust allegations

In the early morning of December 23, Beijing time, according to sources, the company's lawyers had told the investigators that they could take measures before investigators from the federal and state governments in the United States filed full antitrust charges against Facebook in the federal court this month. To promote competition.

According to the news, Facebook lawyers told investigators that the company can authorize its own code and user network to another company to help a new social network company get started. Although Facebook's proposal was ultimately rejected, it shows what the company is willing to give up to get rid of the lawsuit. After being formally sued, Facebook denied allegations of anti-competitive behavior.

Part of the focus of this lawsuit is the concept of network effects, which describes that as a social network becomes larger and larger, its “stickiness” to users also increases. For example, once most of a user's friends and family members have joined a social network, the user is unlikely to switch to a new platform with fewer users, even if the latter can provide some more desirable Features.

The above recommendations made by Facebook may not be able to completely eliminate this effect. Regulators believe that Facebook's "staying power" comes not only from the company's technology, but also from its already entrenched position in many people's lives.

Facebook did not comment on this, but a company spokesperson said in a statement: “We will continue to vigorously defend the ability of people and businesses to choose to use our free services, advertisements and apps because of the value they provide.”

A spokesperson for the US Federal Trade Commission (FTC) declined to comment. Representatives of New York State Attorney Letitia James (Letitia James) have not yet responded. She led the state attorneys' joint crackdown on Facebook.

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