For the last few years, large tech companies have been under the US Senate’s microscope. As firms like Facebook, Twitter, and Google swallow up smaller competitors and gain more market share, they gain ever-greater access to customer data and platforms from which they can influence aspects of customer thought and discourse. Aside from antitrust concerns, which are justified, there have been several high-profile cases of firms mishandling customer data and facilitating the spread of misinformation.
It’s common knowledge that something probably needs to be done, but it’s hard to quantify the impact of tech monopolies and duopolies. The benchmarks applied to the telecom industry and energy industry in the past don’t apply to the information age in the same way. Also, it doesn’t help that Computer Science degrees and experience in technology aren’t widespread amongst our elected officials.
Facebook is constantly under fire and Mark Zuckerberg has become a meme. The question that people are starting to ask is, will Facebook be the first tech company to be broken up, and how will it be done?
Most naturally, you’d want to break up the two conjoined social networks–Facebook and Instagram. Facebook purchased Instagram for a billion dollars eight years ago, which strikes me as a pretty good deal.
Facebook controlling ad placement and combining certain account activities between the two platforms makes it very difficult for anyone to compete. The two apps together have gone a long way in squeezing out Snapchat and retarding the company’s growth.
My opinion: Yes! I don’t have much faith in our elected officials, but it’s something that could be broken up fairly easily without understanding the technical underpinnings. It doesn’t matter how much money Facebook pays lobbyists, I think the lower complexity (and service ubiquity) here makes them a more ripe target than Google.
How will this occur? Most likely, Instagram would become a separate company. Facebook shareholders would gain proportional shares in Instagram. Who would be the CEO? I don’t know. How much would Instagram be valued at? Phew! At least $100B.
So, what would that mean for Instagram users? There probably wouldn’t be many changes while the split happened. But the fun part would come once Instagram once again became a direct competitor to Snapchat and TikTok, and there would likely be some more major changes made as the app continued to differentiate.
And what would that mean for Tree Frog Social? We’ll still be here ready to help you grow! By then, we’ll likely have more service offerings in a wider variety of products. Let us know what you think below!