Meta, the parent company of Facebook and Instagram, saw net income fall 36% to $6.7 billion in the second quarter from the same period in 2021, the California-based company said on Wednesday. In turn, its turnover fell by 1% over this period compared to the same quarter of the previous year, to $28.8 billion.
This is the first billing cut in the history of the social media giant.
The group is suffering from competition from other platforms such as TikTok and reductions in advertising budgets by advertisers amid tight economic conditions.
The meta is losing money, but it was predictable
The metaverse projects that the Meta was developing as a new brand strategy did not bring profit, although Zuckerberg himself had previously stated this situation.
On this occasion, the founder of Facebook indicated to investors that they appreciated the red numbers for the first 3 or 5 years. “We want to make hardware as accessible as possible to everyone and drive the growth of the digital economy,” Zuckerberg told shareholders.
TikTok and competition
Menlo Park has been making decisions in recent weeks driven by the massive global influence of TikTok, the social network that seeks to topple Facebook and its ecosystem of solutions.
Both Instagram and Facebook have announced structural changes to their interfaces and have adapted the presentation of the content of these platforms to a format “closer to TikTok”. This redesign will be implemented gradually, and tests have already begun on various accounts.
FTC denies Meta purchase
On Wednesday, the US Federal Competition Control Service (FTC) announced that it was suing Meta (Facebook, Instagram) to stop it from buying Within Unlimited and its Supernatural VR fitness app.
The federal agency considers the acquisition “illegal” because it threatens to limit consumer choice and drive up prices, as the California-based social media giant is already a dominant player in the market.
“Instead of playing the competitive game, the Meta is trying to buy its way to the top,” John Newman, FTC deputy director of competition affairs, said in a statement.
“Meta already has a successful VR fitness app and has the potential to compete with the popular Within Supernatural app. But Meta chose to buy market share rather than get what it deserved. This is an illegal takeover,” he added.
According to AFP
Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.