Facebook almost bought the video chat app Houseparty, but backed out after antitrust concerns arose within the company, The New York Times reports.
According to the Times, Facebook was in advanced discussions with the company in the hopes of adding them to their roster of social media and messaging systems, which includes Facebook Messenger, Instagram and WhatsApp. However, the social media giant pulled out after determining that the move could raise questions about Facebook’s dominance in the market. Epic Games, the creator of the popular video game Fortnite, bought Houseparty for an undisclosed amount last June.
Facebook already has begun integrating Facebook Messanger, Instagram and WhatsApp, in what Rep. David Cicilline, D-R.I., the chair of the House antitrust subcommittee, described as “a clear attempt to evade effective antitrust enforcement by making it harder for the company to be broken up. We need to hit the pause button.”
The Department of Justice announced last month that it will begin a broad antitrust review of “market-leading online platforms” that top online search, social media and retail services.
“Without the discipline of meaningful market-based competition, digital platforms may act in ways that are not responsive to consumer demands,” Assistant Attorney General Makan Delrahim of the Antitrust Division said in a statement. “The Department’s antitrust review will explore these important issues.”
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