Facebook co-founder, Chairman and CEO Mark Zuckerberg testifies before the House Energy and Commerce Committee at the Rayburn House Office Building on Capitol Hill April 11, 2018 in Washington, DC.
Yasin Ozturk | Anadolu Group Getty Images
Before federal and state investigators filed a lawsuit against anti-trust filing against Facebook in federal court this month, the company’s top attorneys apparently expanded a woolen branch to show that it could encourage competition.
Facebook lawyers told investigators that it could help a new social network get off the ground by allowing its own code and customer-friendliness networks to another company, the Washington Post reported Tuesday.
Investigators eventually refused to give up on Facebook on the proposal, the Post said, but the offer reveals what Facebook was willing to give up to get out of the lawsuits and what was not. . Facebook has denied claims of misconduct.
Part of the lawsuit focuses on the notion of network effects, which outlines how, in terms of business, a network can become increasingly “sticky” for consumers as a whole. who gets it. For example, once most of a user’s friends and family have joined a single social network, that user will have less incentive to move to a new platform with fewer users, even though it has some more desirable features.
Facebook’s documentary offer may not fully account for this impact. Based on the lawsuits, regulators believe that Facebook’s staying power is based not only on its technology, but also already standing in the lives of many people.
Facebook did not comment on CNBC but a spokesman told An Post in a statement, “We will continue to strongly protect the ability of individuals and businesses to choose our free services, advertising, and apps for their value. which they bring with them. “
A spokeswoman for the FTC declined to comment and a representative for New York Attorney General Letitia James, who is leading the states’ effort against Facebook, did not respond.
Read the full story at The Washington Post.
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