Market competition is war between different group of companies, and many times to stop these type of competition they acquire or they buy the particular company which they think will affect them in present or future.
As in today’s time every person use Instagram and Facebook, but at early stage Facebook had a fear that Instagram will give tough competition to it. And in 2012 Facebook acquired Instagram for 1 billion dollar.
Instagram was not the only platform which Facebook wanted to acquire before that it tried to buy twitter also but it could not.
And from this we can say that Mark Zuckerberg approach in market is not about the competition but it is all about to buy the companies.
In 2014, Facebook acquired Watsapp by giving 19 million dollar.
MONOPOLY MARKET –
It is a market structure where there are so many buyers but seller is only one, so due to this seller have power of the market and he can fluctuate the market price according to his wish.
And in case if there is monopoly in market then that particular company will start working according to their criteria and they can compromise in their services and market , and as they can higher the prices according to their requirement which restrict the choices for consumers.
FACEBOOK MONOPOLY IN SOCIAL MEDIA –
There were two lawsuit against Facebook –
First – Federal Trade Commission – it is an anti-trade body in united nation work to prevent business practices that are anti- competitive, deceptive, and unfair to consumers.
They stated that Facebook is creating its dominance in digital marketing platform and it is killing the competition and creating the monopoly but in 2012 Federal Trade Commission only cleared face book’s acquisition of instagram.
Second – Attorney General of different states in USA filed case against Facebook.
So in future if USA court declares that social media platform all the market share is of Facebook and it acquire all just to finish the competition, then Facebook have to separate itself from instagram and Watsapp .
And this won’t be easy task and it will take many years to do same, as these three app data are saved at one place and to vacant it and to separate the data it is a difficult task to do.
There are many different companies in market who have their monopoly in market as Google have their own search engine monopoly.
In 2019 competition commission of India stated that Google is making its dominant position in android market. And it was guilty for imposing many unfair condition.
And court of USA also imposed same statement on Google that it is not right that they are abusing the consumers and market both as a monopoly company.
So for every country it is important for them to see their citizen’s welfare and for this purpose only it is necessary that there should be no monopoly in the market. So that consumers of the country could have more options to opt for it will maintain the competition in the market.