While not throttling (गला घोंटना; to press someone's throat very tightly or to prevent something from succeeding) innovation, regulators must keep the spirit of competition alive
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The lawsuits against Facebook by the Federal Trade Commission and the attorneys general of 46 U.S. States, the District of Columbia and the territory of Guam are a significant challenge to the dominant (प्रमुख/ प्रबल; more important or strong,than anything else of the same type) Internet empire that Mark Zuckerberg has built in such a short time.
The plaintiffs (अभियोक्ता/अर्ज़ीदार; someone who makes a legal complaint against someone else in court), working in close coordination, sued (मुकदमा चलाना; to take legal action against a person or organization) Facebook on Wednesday for its anti-competitive conduct (प्रतिस्पर्धा विरोधी आचरण; behaviour of not allowing competition between companies), which they said harms users, advertisers, competition, and innovation.
The basic charge is that Facebook, in fear of competition, plays by an anti-competitive strategy playbook. It either buys potential competition or, if it cannot, cuts them off from accessing its large platform. Money is no bar in buying off potential competition, as the $19billion purchase price of WhatsApp in 2014 shows.The lawsuits highlight Facebook’s acquisition (अधिग्रहण/संपत्ति ; the process of getting something or something obtained) of Instagram and WhatsApp, which happened when Mr. Zuckerberg saw them as real threats to Facebook’s continuing success. Whatever Facebook cannot acquire faces, as a lawsuit puts it, the “wrath of Mark”.
It may be years before the lawsuits are decided one way or the other. But not even the noisy fallout of the Cambridge Analytica scandal (an incident in which Cambridge Analytica used Facebook user’s personal data for political advertising without individuals’ consent) was as much of an existential threat for Facebook as this issue could turn out to be. For, while highlighting its lack of concern for privacy, a taint (अपमान/कलंक; result of spoiling something; to damage the quality or value of something) that Facebook has struggled to shrug off (हटाना; to get rid of something unpleasant that you do not want) since, the Cambridge Analytica scandal did nothing to stop the social network’s roaring growth.
Facebook, which last year made a revenue of over $70 billion, right now has a market capitalisation (पूँजीकरण; the total value of a company's shares on a stock exchange) that is just a shade under $800 billion. These lawsuits could potentially endanger (खतरे में डालना; to put someone or something at risk or in danger) this business success. The action against Facebook, however, is not to be seen in isolation (एकांत; to separate something from other things with which it is connected or mixed), and is linked to the growing backlash (प्रतिघात/प्रतिक्रिया; a strong feeling among a group of people in reaction to a change or recent events in society or politics) against what is called ‘Big Tech’ globally.Europe and the U.S., especially, have moved against these technology companies not just on antitrust charges but also on cases involving violation of privacy. There seems to be a growing realisation about the disproportionate clout (असमानुपात/आय से अधिक प्रभाव; too large or too small in comparison to something else) that these technology platforms have in the global scheme of things, which they exploit (शोषण करना; to use something in a way that helps you) to further their domination (वर्चस्व/प्रभुता; the exercise of power over someone or something) in the industry. And that it is futile (व्यर्थ; actions having no effect) for regulators and policymakers to continue with a light-touch approach in the technology industry.
In fact, calls for the breakup of technology firms have been put forward by politicians in the U.S. With its immense scale (बड़े/विशाल पैमाने ; extremely large in size, degree, amounts, etc.), Facebook has on more than one occasion managed to startle (चौंका देना; to do something unexpected that surprises or shocks) regulators and administrators, not to mention civil society and activists, by its grandiose (भव्य/विशाल; very large or wonderful) plans which seemed to threaten the existing world order.The offer for a free limited version of the Internet and plans for a new digital currency are a few examples. Internet monopolies (एकाधिकार/एकाधिपत्य; something that is controlled by one person or group and not shared by others) are not a feature of just the developed world. They are everywhere.
And it would be useful for governments and regulators to draw the right lessons from this if they want to keep the spirit of competition alive.
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