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Demise of Facebook?

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Facebook cofounder Chris Hughes is reportedly talking to the US government about how to break up Facebook
  • Facebook cofounder Chris Hughes has been meeting with the US government about breaking up Facebook, according to The New York Times.
  • Hughes has become an outspoken advocate for antitrust action against his former employer, arguing it’s too powerful.
  • Hughes attended the meetings with two other advocates pushing for antitrust proceedings, according to the report.
  • The US Federal Trade Commission has launched a formal antitrust investigation into Facebook.

Chris Hughes, the Facebook cofounder turned outspoken critic of the social network, is in conversations with US regulators about breaking up the tech company.

The New York Times reported that Hughes who left Facebook in 2007, has met with the Federal Trade Commission, US Department of Justice, and unspecified state attorneys general over the past few weeks to discuss antitrust action alongside two other prominent antitrust proponents, Tim Wu and Scott Hemphill.

The potential antitrust approach laid out by Hughes centres on the concept of “serial defensive acquisitions,” according to slides of a presentation viewed by The New York Times, with the argument being that Facebook’s purchases of rival companies allowed it to stamp out competitive threats, in turn allowing it to maintain a dominant position in the advertising industry and charge advertisers more.

The revelation comes a day after Facebook revealed in its second-quarter 2019 earnings that the FTC opened an antitrust investigation into it in June, which, according to Bloomberg, is examining its core social-networking business.

A spokesperson for Hughes declined to comment to Business Insider. The FTC, the Department of Justice, Wu, and Hemphill did not immediately respond to requests for comment.

Earlier this year, Hughes went public with calls for Facebook to be broken up, arguing that it had grown too large and powerful. Hughes said Facebook has become a “leviathan that crowds out entrepreneurship and restricts consumer choice,” and that its acquisitions of WhatsApp and Instagram should be undone.

He joined a growing chorus of critics calling for antitrust action against Facebook, among them Wu and Hemphill, as well as politicians like Elizabeth Warren. Hemphill told The New York Times that Hughes “has been an important contributor to thinking about these issues.”

3 COMMENTS

  1. Much as kind of like Facebook and the concept.
    I always think about how Zukerberg ripped off various people at the start.
    Also I don’t think they should have been allowed to buy Instagram.

    And yes why are all of these “social media giants” leftist censors.
    Google, Trademe, Facebook all have extreme left wing bias.
    If they don’t like something they can delete it.

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