US Federal Trade Commission weighs action against Facebook over how its apps interact: report
- WhatsApp has surged to a user base of 1.5 billion people since its US$22 billion acquisition by Facebook in 2014
The US Federal Trade Commission is considering asking a court to stop Facebook 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 per cent 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 polarised US political environment.
Facebook and the FTC declined to comment.