A federal judge denied Facebook's motion to dismiss the Federal Trade Commission's antitrust lawsuit against it Tuesday, after previously throwing out the government's case and forcing it to file the litigation a second time.
The CEO of Facebook is in New York City.
The images are from the same company.
The FTC alleges that Facebook has engaged in anticompetitive conduct and unfair methods of competition, including through its acquisition of the photo-sharing app, and by imposing restrictions on other app developers to ensure they couldn't compete with Facebook.
The case was initially dismissed by the district judge for being insufficient and light on specific factual allegations.
The FTC's new complaint includes factual evidence about Facebook's alleged misconduct that's far more robust and detailed than before, but he did throw out one aspect of the lawsuit challenging Facebook's policies for app developers because the company
The FTC has enough facts to prove that Facebook has monopoly power.
The judge ruled that the FTC head did not violate ethical rules by speaking out against Facebook in the past.
The company said in a statement that it is confident the evidence will reveal the fundamental weakness of the claims.
It is anyone's guess whether the FTC will be able to prove its case. The court concludes that the agency has made a plausible claim for relief at the motion-to-dismiss stage, where the FTC's allegations are treated as true.
Our investments in both of them transformed them into what they are today. Meta said in a statement that they have been good for competition and good for businesses that choose to use their products. The company has previously decried the FTC's case as "entirely without legal or factual support", writing in its motion to dismiss the refiled lawsuit that the agency is "unapologetically seeking to expand antitrust law beyond its settled and appropriate bounds."
What to watch for.
If the case succeeds, it could have serious consequences for Meta. The FTC wants the court to declare the company in violation of federal antitrust law and permanently stop it from doing anything. It asks for the break up of the company to make it possible for it to make its own separate entities again. The lawsuit acknowledges that Facebook may provide ongoing support or services to companies that it sells.
The key background.
The FTC lawsuit is part of a larger effort to take tech companies to task for anticompetitive behavior. The Department of Justice and state attorneys general have also sued Google over antitrust concerns, for instance, and House lawmakers concluded in October that Congress should consider updating its antitrust laws and breaking large tech companies up, paving the way for new antitrust legislation now making its way through Congress. Meta has maintained it does not practice anticompetitive behavior, and has taken steps to make it harder to break up by better integrating the tech behind its various platforms.
There is a structure called the Tangent.
In December 2020, 48 attorneys general sued Facebook for antitrust violations. The FTC suit that was tossed out by Boasberg last year was not refiled because he threw out that lawsuit with prejudice. The judge ruled that the states' claims were based on conduct that happened more than six years ago, and that would cause harm to Facebook and its shareholders.
The Federal Government sued Facebook after the first lawsuit.
At least for now, Facebook has won antitrust lawsuits.
The FTC and 48 Attorneys General have filed antitrust charges against Facebook.
All Rights Reserved © 2024
