Facebook CEO and founder Mark Zuckerberg leaves the Merrion Hotel in Dublin after meeting with Irish politicians to discuss social media regulation, the currency that runs through mainstream advertising treatment and safety of young people and vulnerable adults. On Tuesday, April 2, 2019, in Dublin, Ireland.
Artur Widak | NurPhoto | beautiful pictures
Facebook’s The shrinking market capitalization could offer one advantage for the tech giants: the ability to forgo new antitrust liability.
The company, which was recently rebranded as Meta, closed with a market cap below $600 billion on Tuesday for the first time since May 2020. Shares fell 2.1%, bringing it to a low. market capitalization is $599.32 billion.
The $600 billion market cap figure is also the number that House lawmakers have chosen as the threshold for a “covered platform” under competitive invoice packages specially designed to target Big Tech. If Meta stays below that threshold, it can avoid the additional hurdles invoices will install on how it can conduct business and execute transactions, while larger peers its like Amazon, Alphabet, Apple and even Microsoft become subject to the rules.
It can take quite a while for any bill to become law, if that happens. The language can still be modified, and even if originally written, bills will continue to apply to platforms for a period of time after they drop below the market cap threshold. A recent Senate bill through the Judiciary Committee actually uses a lower market cap threshold than its companion, at $550 billion.
However, the milestone points to one of the challenges of drafting legislation targeting the tech industry. In addition to ensuring bills don’t address outdated challenges by the time they’ve passed, lawmakers must strive to include a select group of companies.
One bill that could have a significant impact on Meta, if it is considered a covered platform by the time it passes, is the Platform Competition and Opportunity Act. The bill, originally introduced by Corporal Hakeem Jeffries, DN.Y., with a partner introduced by Sen. Amy Klobuchar, D-Minn., would make it harder for covered platforms to obtain the funds. younger potential competitors.
Facebook is currently battling an antitrust lawsuit under current Federal Trade Commission law alleging that it used its acquisitions of Instagram and WhatsApp to maintain monopoly power. If this new bill becomes law and Meta has to follow it, it could make it even harder for the company to make similar acquisitions in the future.
The House version of the bill says that when federal regulators designate a foundation as required by law, the company must have annual net sales or a market capitalization of $600 billion, regulated adjusted for inflation, at that time or in the two years prior to the appointment or action brought under the action.
The Senate’s version states that the market capitalization for an insured platform should be based on “a simple average of the closing price per share of the common stock issued by the person for the trading days.” for the 180-day period ending on the date of issue of this Action.”
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