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Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Report: Twitter under investigation by Federal Trade Commission

By | June 30, 2011, 12:51pm PDT

Last week, Google got hit by a federal probe. This week, micro-blogging giant Twitter is reportedly under investigation by the Federal Trade Commission.

According to The Business Insider, the FTC is “actively investigating Twitter and the way it deals with the companies building applications and services for its platform.” Additionally, Twitter is expected to soon be uploading a site dedicated to providing “as much information as possible” for developers and partners.  will soon create a site to “offer up as much information as possible to developers and partners.”

BI assumes that the two pieces of news are related, and it’s hard to argue at this point. It’s not that it looks suspicious on Twitter’s part, but maybe it’s better to be proactive in this regard than wait for a lawsuit, fine or whatever the FTC might slap down.

At this point, it’s unclear as to why the FTC would be looking behind the scenes at Twitter. One of the more likely explanations would probably have something to do with the fact that Twitter has been cracking down on support for third-party client apps for its platform. Twitter has made it known publicly that it wants these third-party apps gone. (Maybe San Francisco-based company said it more politely, but that’s the gist.)

One way Twitter has gone about this publicly is buying these clients out, such as Tweetie last year and TweetDeck this year. However, now there is speculation that Twitter might be acting more aggressively than we thought. That’s possibly where and why the FTC has stepped in.

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Rachel King is a staff writer for ZDNet based in San Francisco.

Disclosure

Rachel King

Rachel King has no business relationships, affiliations, investments, or other potential conflicts of interest relating to the content posted in this blog.

Biography

Rachel King

Rachel King is a staff writer for CBS Interactive in San Francisco. Before serving as a contributing editor at ZDNet in New York City for two years, she previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish America Magazine and the New York Daily News, among others. Rachel has a B.A. in Mass Communications and History from the University of California, Berkeley and a M.S. in Journalism from Columbia University, where she served as art director for the student magazine, Plated.

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RE: Report: Twitter under investigation by Federal Trade Commission
mrmilll 6th Nov
Your blog is great. Your thoughts are also very good and i am very inspired from your post. That is why I visit this blog again and again and will come back in future too.
Carbon Steels
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Could it be...
JohnMcGrew@... 30th Jun
...that Twitter isn't spreading enough K-Street cash about Washington?
@JohnMcGrew@... Nope... More likely MS has a new target acquisition...
Lots of "maybe"s, assumptions and "speculation" in this article. Total fluff and no help at all in investigating the subject matter.
@GrumpyHair If you want fluff, check out the two posts before yours.
Totally agree GrumpyHair. Not enough information in this poorly worked article.
Will Twitter reply to all of the FTC's questions with 140 characters or less?
@jgm@... Nicely done.
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What message does that send to the next up & coming internet social infrastructure startup? It sends the message, 'Welcome to the New Socialist Amerika.' The federal government wont be happy until it has big brother oversight and control into everything!

It also sends the message that you shouldn't claim you are creating an open platform to juice your own adoption and than attempt to foreclose that market when you have become mainstream and have the leverage, wealth, and power to shut it down. What's wrong with that?
@Elishia Windfohr
You are exactly correct.
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The message is...
JohnMcGrew@... 30th Jun
...that once you get big enough to get their attention, you need to hire some expensive lobbyists and start spreading some protection money around. This was Microsoft's big, expensive lesson from the '90s.
@Elishia Windfohr

Socialist? Using 3rd party companies to build up your business, then shooting them in the head when you become successful. THAT's socialist in the Soviet model. Please, spare us your meager understanding of American government service to its citizens. Staying awake in civics class can actually be enlightening.
@ewelch Many people don't know the difference between socialism and fascism and will call Obama a, "Nazi socialist dictator." Kind of frustrating isn't it?
@snoop... well, "Nazi" means "national socialist." (party) But I see what you're saying, the US is not socialist. It's "corporatist" which is what Mussolini said was a better name for the fascist system. We have "soft fascism." Look at recent supreme court decisions giving corporations more rights than flesh and blood people.
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@ewelch

...with the sorry state of this government? Sure, we all were awake in civics class. And then we went out in the world and discovered the truth.

BTW: What "American government service to its citizens"?
@pgit In name yes, but by political theory they were fascists. It's a little bit confusing, but the nazis are in a very clear way fascists.

I do think it's interesting, however, how fascism often masquerades as socialism to gain acceptance.
@snoop0x7b and @ewelch;

I agree. The American public's ignorance of government is not just frustrating, it's downright frightening. The Achille's Heel of any democracy is an uneducated, uninformed, and uninvolved electorate easily herded by fevered appeals to emotion.

American government now might best be described as a plutocracy or even an oligarchy.
@Elishia Windfohr well said Elishia... this is @EdF1958
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Correction:
sissy sue 1st Jul
@Elishia Windfohr

"Welcome to the New Fascist Amerika," where your fellow citizens are happy to see you rot in prison for a non-violent offense, but will be celebrating what they think is "their freedom" on Monday.

Otherwise, your sentiments are right on target.
Well, there's plenty of corporate insider info that can be put into a 140 character tweet.

And then there's the 800 lb. corporate gorilla on the loose whose sole means of communication uses massive text shortcuts to self-promote their service.

Given the choice between the two, your idea makes more sense, but then, who said the 800 lb. gorilla in the room had to make sense? wink
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Clearly Twitter hasn't learned the lesson - hire public sector workers, donate HEAVILY to McBama and his ilk.
@jamesfairman@... Yes... agree...
It's not in any way unclear why this is happening. They are shutting out all third party apps from being able to authenticate for direct messages. They haven't made a dime, and they're trying to kill off the comopetition before they become profitable. That's the bottom line. And if they go ahead and prevent my chosen apps (Twitterbot on my iPhone, Echofon on my iPad and Tweetie on my Mac) from having a seamless way of logging in and getting everything I want from Twitter, then I will drop it like the monopolistic martinets that they are.
Never mind.
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Or...
jorgejaneiro@... 30th Jun
it may have more to do with the fact that twitter helped bring about the demise of dictatorships in Egypt and Tunisia, and this may give some politicians a rash in hard to reach places??
First is was Google now Twitter. I look forward to seeing the Internet "crisis" that will "force" the government to regulate the Internet more closely through the FTC.
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The ploy for more governmnet
Duncan651@... 1st Jul
This is just another "crisis" so that the government can step in to censor the Internet. When will the media wake up and realize that their right for free speech is also under attack.
@Duncan651@... Free speech differs from violating contract law and unfair competition. Twitter's license agreement for their API implied some continuation of services. The Sherman antitrust act of 1890 does not allow you to deceive others to enter into business agreements in good faith and then turn around and use your size to undercut their business because you have a competing product. The Sherman act has been challenged several times over the years in the supreme court, and it has survived every challenge for 121 years... I think the supreme court has established that bad business practices do not equate with free speech.

The end result of this investigation is third party twitter clients will be back. This is a good outcome for the consumer because it makes the market more competitive. The whole point of the FTC is to encourage freer markets... It isn't a corporate advocate, it's a consumer advocate, and what's good for one company isn't good for us all.

The reason Twitter is in trouble isn't their market dominance, but how they acted towards third party Twitter clients. Businesses were built on the availability of the Twitter API, Twitter chose to lock out those businesses and favor its own Twitter clients.
ZZZZzzzzz... this is important in the Grand Scheme of Things how? Oh yeah... it's an "intrusion" of the Marxist Socialist Pinko Commie Khmer Rouge Fascist Jesus-Jerkna Nazi's that is our government. Right?
Make me happy and shut down Twitter and Facebook entirely. Waste of bandwidth and work productivity.
Your blog is great. Your thoughts are also very good and i am very inspired from your post. That is why I visit this blog again and again and will come back in future too.
Carbon Steels

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