News that the Federal Trade Commission (FTC) is investigating Facebook (FB) is not new. However, on Friday, it was announced that CEO of Facebook Mark Zuckerberg and COO Sheryl Sandberg might also be deposed in relation to the investigation.
Facebook announced in 2019 that an antitrust investigation had been initiated into their company by the FTC. The investigation stemmed from concerns that Facebook was seeking to monopolize the industry through its purchases of companies such as WhatsApp and Instagram. If Zuckerberg and Sandberg are deposed by the FTC, they would be required to provide sworn legal testimony under penalty of perjury. According to MSN, there is reportedly concern by Facebook officials over company executives potentially having to testify.
Facebook has experienced trouble with the FTC in the past. In 2018, Facebook was investigated by the FTC over illegal data harvested from 87 million of its users. The investigation resulted in a fine for the social media giant of $5 billion.
In other Facebook-related news, the company has announced that it will soon be launching a new video clip sharing platform called Reels. Reels is expected to compete with the popular TikTok app and provide an outlet for Instagram users to record and share 15-second clips of music and videos. Reels is not Facebook’s first attempt at this form of application; short video sharing app Lasso was closed earlier in July after only being in existence for about a year and a half.
Facebook closed the market on Friday up 0.46% to $242.03 per share. It is expected that investors will continue to follow the FTC investigation closely.
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