Facebook Tries To Use Monopoly Wallet To Steal Tik Tok Creators

Facebook is trying to use its monopoly wallet to steal popular Tik Tok creators with millions of fans. Instagram plans to launch its competitive product Reels. Facebook CEO Mark Zuckerberg testifies before a joint trade and justice committee hearing on the use of Facebook data to target U.S. voters in the 2016 election, April 10, 2018 (AP Photo / Andrew Harnik)

Facebook’s Instagram offers incentives to lure popular TikTok creators with millions of followers to a new competing service, with payouts that could potentially run into the hundreds of thousands of dollars.

The new service, Instagram Reels, is expected to launch in August in the United States and several other countries, the Wall Street newspaper reported. Like China-based TikTok, Reels allows users to share short videos.

Instagram has “approached a wide range of creators about Reels in several of the countries where it is currently being tested,” company spokeswoman Sarissa Thrower said.

The House Judiciary Subcommittee on Antitrust has been investigating the potential monopoly practices of tech giants, including Facebook, for more than a year.

Facebook CEO Mark Zuckerberg plans to argue that any effort to hold the company accountable for potential antitrust violations would give China a business advantage, Rolling Stone reported. “Zuckerberg plans to pitch his company as an American success story in a competitive and unpredictable market, now threatened by the rise of Chinese social media applications around the world,” according to a Bloomberg report.

Tik Tok is owned by ByteDance, a Beijing internet technology company. ByteDance was founded by Zhang Yiming in 2012 and has a private valuation of $ 105 billion to $ 110 billion, CNBC reported. Facebook has a market capitalization of $ 667.06 billion.

In recent years, TikTok has done numerous ads on Facebook and Instagram, targeting users on their own ground. Now, Tik Tok is thwarting Instagram’s push by announcing a $ 200 million fund to help its creators “earn extra income that rewards the care and dedication they put into creatively connecting with inspired audiences.” by their ideas ”.

Instagram is offering the most money to creators who commit to posting their videos exclusively to Reels, according to a TikTok creator thinking about it. For those who won’t be offering exclusivity, Instagram is asking them to post their videos to Reels before other platforms, known in the industry as “first looks”.

Instagram also offers to pay the production costs of popular creator videos, WSJ reported. Instagram used nondisclosure agreements to prevent creators from sharing the terms of potential deals, one person said.

TikTok is extremely popular with young users; In the United States, 70% of 10-year-old girls with smartphones used the app in 2019, according to Jiminy, a parent app that measures children’s smartphone habits.

However, regulatory threats are looming in the United States for Tik Tok. The Trump administration and some U.S. lawmakers are considering limiting access to security and privacy concerns. TikTok said it has never provided user data to the Chinese government and will not do so.

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Facebook also faces its own dark cloud of impending regulation over competition and monopoly issues. Snap and other rivals have complained to federal regulators that Facebook is undermining its rivals. Facebook says its “acquisitions fuel innovation and that its addition of new services has given consumers more choice,” the WSJ reported.

Facebook this month shut down an app launched in 2018 that allowed users to post short videos and view them in an algorithmic feed, like Tik Tok. “Since Lasso didn’t get it, it’s not surprising to see Facebook try this tactic with an Instagram-related copy product,” a TikTok spokesperson said. “No matter how you dress, hundreds of millions of people really enjoy TikTok.”

YouTube said last week that it was testing new features that resemble the video options available on TikTok.

Instagram “responds to demand and strives to innovate in user experience, and our goal here is to provide choice, which we believe is a good thing for people,” said the spokesperson. from Facebook.

Read more: George Soros calls out Facebook and Google as monopolies that promote addiction

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