On September 10, 2020, Facebook Ireland asserted legal action seeking to enjoin the IDPC’s proposed ban on Facebook’s transfer of personal data from the EU to the US. Facebook Ireland alleges that the IDPC’s actions breach several administrative law principles, including failure to conduct a proper inquiry before issuing the preliminary decision, premature judgment and prejudice, failure to follow the IDPC’s procedures, breach of fair procedures, and discriminatory treatment.
Facebook’s affidavit in support of its claims states that it “is not clear to [Facebook] how, in those circumstances, it could continue to provide the Facebook and Instagram services in the EU”. Facebook also warns that if it “alone is being investigated and subject to a suspension of data transfers to the U.S., this would be liable to create a serious distortion of competition”.
On September 14, the High Court of Ireland issued an ex parte order temporarily suspending the IDPC’s proposed ban on Facebook’s data transfers to the US. The court scheduled a hearing on the matter for later this year. — Pearl Cohen Zedek Latzer Baratz - Haim Ravia and Dotan Hammer
* Responding to a U.S. government effort to split Facebook (NASDAQ:FB) from Instagram and WhatsApp, the company's lawyers say such a move would be a "complete non-starter" in a 14-page document released ahead of a report from the House Antitrust Subcommittee expected this month.
* According to the document, it would be almost impossible for Facebook to unwind the acquisitions, Instagram in 2012 and WhatsApp in 2014, and would force it to spend "billions" of dollars maintaining separate systems, weakening security and harming user experiences.
* The government's case, if pursued, would probably focus on arguments that the company's acquisitions were aimed at reducing competition, a question that the Federal Trade Commission (FTC) did not consider (?) according to Columbia University law professor Tim Wu. He adds that Facebook's claim that a potential breakup would be too hard would be unlikely to carry much legal weight.
* This summer, the subcommittee published emails from Facebook chief Mark Zuckerberg citing the difficulty competing against Instagram as a rationale for a takeover. In a later message, he acknowledged that the company's aim would be to "neutralize a competitor," although he backtracked in a subsequent email.
* The FTC is reportedly planning to file a complaint against the company by year-end, part of a broader wave of investigations into fellow tech behemoths Apple, Amazon and Google. — seeking alpha
But in order to do this well, we need to be mindful about keeping and building on Instagram’s strengths and features rather than just trying to integrate everything into Facebook.
That’s why we’re committed to building and growing Instagram independently. Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread this app and brand to even more people. — Zuckerberg
"In particular, Facebook allegedly has made key APIs available to third-party applications only on the condition that they refrain from developing competing functionalities, and from connecting with or promoting other social networking services." — Ian Conner
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