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Facebook Reportedly Crushed The Deal Of Buying Housparty Over Antitrust Fears

Facebook Inc. is one of the tech giants that will be reviewed by The Department Of Justice over antitrust claims. It’s reported that the company was in talks to buy Houseparty, a group video chat. It abandoned its deal due to the rising scrutiny by the Federal Trade Commission.

The biggest social media platform had already acquired Instagram, Whatsapp, and have its own messaging service. While this move by Facebook has prompted a debate about is this just a smart business move or bring out anti-competitive practices. Its own former executive told that the company should be broken up into fragments.

“The combination of Facebook, Instagram, and WhatsApp into the single largest communications platform in history is a clear attempt to evade effective antitrust enforcement by making it harder for the company to be broken up,” he said. “We need to hit the pause button,” said David Cicilline, Democrat of Rhode Island.

Houseparty is already acquired by Fortnite Owner, Epic Games this July for an undisclosed sum. “Houseparty brings people together, creating positive social interactions in real time,” said Tim Sweeney, founder and CEO of Epic Games. “By teaming up, we can build even more fun, shared experiences than what could be achieved alone,” said in Medium post.

Facebook was fined $5 Billion for security probe this fall. FTC sought clearance from DOJ and opened an anti-trust investigation against the company. It’s been talking with the member of the companies which Facebook bought over the years.

While Stan Chudnovsky, Vice President at Facebook defended allegations of anti-trust practices.

“Building more ways for people to communicate through our messaging apps has always been about creating benefits for people — plain and simple,” said Stan Chudnovsky. “People want to be able to reach as many people as they can with the messaging app they choose.”

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Simon Hemelryk
An innovative and experienced editor and content producer of highly successful, nationally and internationally covered, agenda-setting, print and online material for Reader's Digest, national newspapers, Saga and more. Accomplished team manager and writer. Created and produced numerous brand, PR and revenue-boosting articles, campaigns, advertorials, supplements and guides.