“Facebook fell due to signs that it is being overtaken by the competition”added the analyst. What happens is that TikTok is capturing the youngest users while other services Snap, Discord, YouTube, Twitch also gained ground in the contest.
“Facebook, like MySpace before it, has lost some of its appeal”Michael R. Bloomberg opined. Despite this, he warned that Facebook still dominates a quarter of the digital advertising market but is in a battle with Google and Amazon, which is joined by retail networks such as Walmart and Target.
This industry employs more than 7 million people and represents about 10% of the gross domestic product. Many of their most popular products are free. “Relentless competition like this is one of the reasons the US tech industry is thriving”said the analyst.
“Congress is moving forward with a series of antitrust bills that would designate Meta and a handful of its competitors as covered companies, in need of new rules to curb their supposedly unassailable market power. Supporters of the bills say that regulation has not kept pace with the spectacular growth and evolution of technology companies in the last three decades. Lost in the discussion is the possibility that these two events are related,” he explained.
Meanwhile, the Federal Trade Commission (FTC) continues to work on a lawsuit over the acquisitions made by Facebook. “There are certainly cases where the laws should be updated for companies that didn’t exist a generation ago. And it’s fair to ask if these companies now have too much power in public life. Their role in spreading disinformation is a serious societal concern.” that Congress has yet to really address, even as it targets other parts of their business. Washington, as usual, has its priorities backwards“Michael R. Bloomberg said.
And he closed: “The market is making it clear that technology companies are not the invulnerable monoliths that some politicians have made them see. Any sensible regulation should start from this principle. The fall of Facebook is what looks like Joseph Schumpeter’s gale of creative destruction in action. It can be painful for individual investors. But for the country, it’s a sign of progress“.
Source: Ambito
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