On June 28, the US Court for the District of Columbia dismissed the US Federal Trade Commission (FTC) antitrust complaint against social media giant Facebook due to insufficient legal basis. .
This is considered an initial victory for Facebook in the battle with US antitrust regulators. Reportedly, after the court ruling, Facebook’s shares rose nearly 5%, reaching over $1 trillion.
|US antitrust regulator rejected Facebook lawsuit|
In his ruling, District of Columbia Judge James E. Boasberg wrote: “The FTC has failed to invoke sufficient facts to reasonably establish the element necessary for all of the claims in Part 2, namely that Facebook has a monopoly on the Personal Social Networking Services (PSN) market”.
Facebook filed a motion to dismiss the lawsuits in March, alleging that the FTC had failed to adequately identify the market in which the company had a monopoly.
Judge Boasberg seems to agree with that argument. But while dismissing the complaint, he did not completely dismiss the case, but asked the FTC to amend its complaint and take the case to court.
The judge also told the FTC that it was looking more closely at Facebook’s acquisitions of Instagram and WhatsApp rather than pursuing Facebook’s refusal to allow interoperability, which would have allowed users to put their data over. other platforms.
The court also dismissed the lawsuit brought by 46 states regarding those acquisitions on the grounds that it had been a long time since the events were mentioned.
FTC Chairwoman Lina Khan is now likely to return with a new lawsuit, focusing more directly on Facebook’s acquisition history.
Regarding the court’s ruling, a Facebook spokesperson said: “We are pleased that today’s decisions have recognized the flaws in the government’s complaints against Facebook. We compete fairly every day for people’s attention and will continue to deliver great products to the users and businesses that use our services.”
The ruling comes as many politicians in both parties are seeking to rein in tech companies, albeit for different reasons. Senator Josh Hawley, a Republican, said the court’s ruling was “deeply disappointing”.
Meanwhile, Representative Ken Buck said that antitrust reform is urgently needed.
“Congress needs to provide additional tools and resources to our antitrust enforcement agencies to deal with Big Tech companies engaging in anticompetitive behavior,” he wrote.
Democratic Senator Richard Blumenthal also called for a review of antitrust laws, saying that Facebook has a monopoly in the online network, it is holding customers, customer data and the social media market. festival.
Phan Van Hoa(according to NBC News)
How do the new US bills passed affect Big Tech?
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