Facebook request cap falls below$ 600 billion — which could actually help it dodge new antitrust scrutiny

Facebook request cap falls below$ 600 billion — which could actually help it dodge new antitrust scrutiny
Published in : 09 Feb 2022

Facebook request cap falls below$ 600 billion — which could actually help it dodge new antitrust scrutiny


 Facebook’s shrinking request cap could hold one downside for the tech mammoth the possibility of skirting new antitrust liability. 

 The company, lately renamed Meta, closed with a request cap below$ 600 billion on Tuesday for the first time since May 2020. The stock fell2.1, bringing it to a request cap of$599.32 billion. 
 
 The$ 600 billion request cap figure also happens to be the number House lawmakers picked as the threshold for a “ covered platform” under a package of competition bills designed specifically to target BigTech.However, it could avoid the fresh hurdles the bills would install for how it can conduct its business and make deals, while its larger peers like Amazon, If Meta were to remain below that threshold. 

 It could take relatively some time for any of the bills to come law, if that happens at all. The language could still be amended, and indeed as firstly written, the bills would continue to apply to the platforms for a period of time after they fall below the request cap threshold. One Senate bill that lately passed through the Judiciary Committee actually uses a lower request cap threshold than its House companion, at$ 550 billion. 
 
 Still, the corner points to one of the challenges of casting laws that target the tech assiduity. In addition to making sure the bills aren't working for outdated challenges by the time they pass, lawmakers must try to encompass a select group of companies. 

 One bill that could significantly impact Meta, if it’s considered a covered platform by the time it passes, is the Platform Competition and Opportunity Act. The bill, firstly introduced byRep. Hakeem Jeffries, D-N.Y., with a counterpart introduced bySen. Amy Klobuchar, D-Minn., would make it harder for covered platforms to acquire youthful implicit rivals. 
 
 Facebook is formerly fighting an antitrust action under being law from the Federal Trade Commission that alleges it used its accessions of Instagram and WhatsApp to maintain monopolypower.However, it could make it indeed harder for the company to make analogous accessions in the future, If this new bill were to come law and Meta were subject to it. 

 The House interpretation of the bill says that when civil controllers designate a platform as covered by the law, the company must have net periodic deals or request cap of$ 600 billion, acclimated for affectation, at that time or during the previous two times of the designation or action brought under the act. 
 
 The Senate interpretation says the request cap for a covered platform should be grounded on a “ simple normal of the ending price per share of the common stock issued by the person for the trading days in the 180- day period ending on the date of enactment of this Act.”