Meta has taken down its Threads app in Turkey after the
country's competition authority ordered the separation of user data between
Threads and Instagram. The Turkish Competition Authority (TCA) had been
investigating whether allowing data to be shared between the two apps
represented anti-competitive behavior. The TCA argued that by integrating user
data from Instagram, Meta was using its existing dominance in photo sharing to
unfairly grow Threads at the expense of competing social platforms.
Meta had launched Threads in 2020 as a more private
messaging app focused on close friends and family. It was designed to share
updates and media similarly to Instagram Stories but within a closed circle.
The company had hoped Threads could become an important new community for users
and give it another entry point into the social media market. However, its
tight integration with Instagram raised antitrust concerns for regulators.
When announcing the investigation late last year, the TCA
noted that Threads pulls the contact lists of users straight from their
Instagram accounts. It also pre-populates Threads profiles with Instagram
photos to make onboarding seamless.
But regulators were concerned this effectively used
Instagram's large user base as an automatic boost for the new Threads platform
without competing apps having the same advantage. The TCA argued it put Threads
in an anti-competitive position from the start due to Meta's existing market
dominance with Instagram.
In response to the interim order, Meta stated it does not
believe it has violated any Turkish laws regarding fair competition. However,
it had no choice but to comply with the regulator's ruling and remove Threads
from the country.
The company emphasized it intends to appeal the decision and
reinstate the app as soon as possible. Meta claims Threads and Instagram
operate as separate products and users can choose whether or not to link their
accounts between the two platforms. It also argues data is only shared with
user consent.
However, the TCA investigation is still ongoing and may
ultimately find Meta's claims insufficient. Regulators around the world are
closely scrutinizing how tech giants leverage existing popular services to
promote new products.
If the TCA concludes the level of integration between
Threads and Instagram is inherently anti-competitive, it could demand a
stricter separation of the two platforms going forward. This could limit Meta's
ability to directly promote Threads growth through Instagram, even with user
opt-in. It may also inspire other regions to take a harder look at Threads'
model and data usage policies.
For companies like Meta, navigating antitrust regulations
while still being able to promote multiple interconnected offerings will be an
ongoing challenge. Platforms face increasing pressure to prove new products can
succeed based on their own merits rather than by piggybacking on established
user bases.
Striking this balance will test the ingenuity of tech firms
for years to come. It is still unclear whether Threads long term viability
relies too heavily on its Instagram integration to ultimately avoid more
regulatory intervention down the line.
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