Anti-Fb Lawsuits Could Change Social Media Panorama if Profitable, Cyber Safety Skilled Says
19:09 GMT 12/13/2020Get a short url
Earlier this week, the US Federal Trade Commission and 48 states filed antitrust lawsuits against Facebook for alleged anti-competitive practices. The company responded by saying it was confident it could resolve the lawsuit. Pierluigi Paganini, a cybersecurity expert, reflects on the possible outcome of this legal battle.
Sputnik: The double lawsuits filed this week by the government and more than 40 attorneys general against Facebook are the most serious claims the social media giant has made to date. How harmful could they be to the company? Do you think the lawsuits will be successful?
Pierluigi Paganini: I don’t think this is the most serious claim yet. Facebook’s behavior has been widely discussed and criticized, particularly following the disclosure of the Cambridge Analytica case. However, the “double lawsuits” pose a new problem for the company as it claims that the social media giant is using its power to harm competition in the social networking market and the quality of supply for the company Deteriorate end-users.
I don’t think the lawsuits will be a complete success, as many organizations’ strategy is quite similar to that of Facebook, which is currently under investigation.
Sputnik: How much power, authority and influence can Facebook lose if the lawsuits are successful?
Pierluigi Paganini: The company risks an enormous loss of power in the coming years. Keep in mind that acquisitions are critical to any business in enhancing its capabilities and reducing the power of direct competitors. The success of the lawsuits could have serious consequences for the company’s strategy, global offering, and the way it manages a vast wealth of information gathered through its many services.
Sputnik: How could this legal battle change the social media landscape? Will other companies be affected?
Pierluigi Paganini: It could have the effect of a hurricane and completely transform the social media landscape. Keep in mind that social networks are evolving themselves and include instant messaging and online shopping capabilities. These changes are supported by acquisitions that could be strategic for the companies to win the race in implementing new services. Every company in the industry is potentially affected.
Sputnik: To what extent could this case set a precedent? Will we see more government regulation in social media companies?
Pierluigi Paganini: This could set an important precedent as the lawsuits will force social media to be more transparent about their strategies and the way future acquisitions could affect the quality of what is offered to their users. Governments will continue to work on new government regulations because of the immense power that social media platforms have these days. The government ordinance aims to reduce that power by, for example, proposing to outsource some of the businesses bought by the social media giants.
The views and opinions expressed in the article do not necessarily reflect those of Sputnik.