Facebook Surrounded... 'FTC Chairman Recusal Request' Counterattack (Comprehensive)

TikTok Competition...1 Trillion Won Investment in Content

[Asia Economy Reporter Yujin Cho] Facebook has launched a counterattack amid simultaneous antitrust investigations and regulatory threats from the U.S. administration and Congress.

Major foreign media outlets, including The Wall Street Journal (WSJ), reported on the 14th (local time) that Facebook filed a motion to disqualify Lina Khan, Chairwoman of the Federal Trade Commission (FTC). In the application submitted to the FTC, Facebook argued that Chairwoman Khan, who has a biased perception of big tech companies, lacks fairness in handling its antitrust case.

Facebook stated, "Chairwoman Khan has very publicly and consistently asserted that Facebook violated antitrust laws even before the investigation," and added, "For procedural fairness, Chairwoman Khan should be excluded."

The FTC is currently reviewing whether Facebook's acquisition of Instagram violates antitrust laws. Earlier, a Washington DC court dismissed the FTC's antitrust lawsuit against Facebook due to insufficient grounds, but the FTC can refile within 30 days.

Currently, the FTC is dominated by a 3-2 majority of commissioners recommended by the Democratic Party. If Chairwoman Khan is excluded from related duties as Facebook requested, the motion to refile the lawsuit against Facebook would not pass a vote.

On the same day, Mark Zuckerberg, CEO of Facebook, announced that the company will support content creators with $1 billion (approximately 1.144 trillion KRW) by next year. In a Facebook post, CEO Zuckerberg said, "We want to build the best platform where millions of creators can make a living."

Foreign media interpreted this as reflecting the government and congressional antitrust investigations targeting the company and the negative public opinion. Besides the FTC, the U.S. House of Representatives passed the "Ending Platform Monopolies Act" at the end of last month to curb the growing influence of platform operators like Facebook. If this bill passes both houses and is signed by the president, Facebook could face a corporate breakup similar to the Standard Oil case in the past.

There is also an interpretation that this move aims to secure competitiveness against other popular platforms such as TikTok and Clubhouse. Facebook recently made audio investments to strengthen its defense against Clubhouse. CNBC explained, "Facebook, which is shifting toward voice- and video-centric platforms, is using this as a means to attract famous influencers and enhance related content."