In my previous posts I’ve already pointed out why social networks, although not really profitable now, are essential for the “branding” online advertising market.
Not only are concerns getting bigger that Facebook intentionally enlarges the “deep web” by barring search engines to search the networks content, it is also accused of “anti-competitive-practices”. One of the arguments brought forward by Power.com is that Facebook acts like a phone company that blocks its users from moving their telephone number. Users have invested huge amounts of time into building their online presence and Facebook now locks up this information.
Power.com, which has about 8 millions users and aggregates Twitter, MySpace, LinkIn, Hi5, and Okut has now brought in a claim (Facebook Inc vs. Power Ventures Inc, Case No. 5:08-05780, U.S. District Court for the Northern District of California) against Facebbook, accusing Facebook of unfair competition, restraint of trade and creating a monopoly.
I am looking forward to see how Facebook will respond to these arguments by e.g. pointing out that most of the things it is accused with could also be explained by concerns about its users’ privacy. We will see…
For more information of the issue click >>here<<.