Aug 2, 2019

FTC said to look at Facebook's Instagram and WhatsApp purchases

The Federal Trade Commission's antitrust probe of Facebook is looking at whether the social network used acquisitions to take out its competition, according to the Wall Street Journal.

Why it matters: It suggests that the agency was serious when it said it might look at already-completed mergers and acquisitions as part of a broader review of the tech sector.

Flashback: Two major acquisitions, of Instagram and WhatsApp, have given Facebook a shield against declining user growth on its classic social platform for nearly a decade.

  • It bought Instagram first, in 2012, for $1 billion.
  • It purchased WhatsApp two years later for $19 billion.

In recent years, critics have contended that those deals allowed Facebook to stifle competition.

  • They say Facebook has used proprietary data, via a virtual private network called Onavo that it acquired in 2013, to identify small companies gaining market share and buy them before they can present too much of a threat.
  • Presidential candidate Sen. Elizabeth Warren (D-Mass.) has called for appointing regulators who might be willing to unwind those acquisitions by Facebook, and other purchases by major internet firms.

Yes, but: The exact nature of the FTC's inquiries are not yet clear. Investigations are generally cloaked in secrecy and can take years.

The bigger picture: The increased antitrust scrutiny of major tech giants may already be affecting their decisions about what companies to acquire — and whether the extra fight in D.C. is worth the effort.

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NYPD commissioner: "I'm extremely proud" of officers' response to protests

New York City Police Commissioner Dermot Shea in February. Photo: Yana Paskova/Getty Images

New York City Police Commissioner Dermot Shea said in a public statement Sunday that he is "extremely proud" of the New York City Police Department's response to protests over the death of George Floyd Saturday night, writing: "What we saw in New York City last night and the night before was not about peaceful protest of any kind."

Why it matters: New York City residents captured several instances of police officers using excessive force against demonstrators. In one video, two NYPD SUVs are seen ramming into protesters who were blocking a road and throwing traffic cones at the vehicles.

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SpaceX capsule carrying astronauts docks with space station

The Crew Dragon just before docking on Sunday. Photo: NASA TV

SpaceX's Crew Dragon safely delivered two NASA astronauts — Doug Hurley and Bob Behnken — to the International Space Station on Sunday after the company's historic launch Saturday.

Why it matters: This marks the first time a private company has delivered people to the space station and it signals the beginning of the end of NASA's reliance on Russia's Soyuz spacecraft for flights to orbit.

Minnesota AG: Prosecution of officer in George Floyd case shouldn't be rushed

Minnesota Attorney General Keith Ellison cautioned in an interview on "Fox News Sunday" that the case against Derek Chauvin, the former Minneapolis police officer involved in the death of George Floyd, is "very early in the process" and that charges could be amended or added.

Why it matters: Chauvin was arrested last week and charged with third-degree murder and manslaughter, which implies that he did not intend to kill Floyd. Some protestors have demanded more severe charges and Floyd's family has asked Ellison to serve as a special prosecutor in the case.