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Forty-six U.S. states have filed a Facebook antitrust lawsuit accusing the social media giant of maintaining a monopoly harmful to its users and advertisers.
The lawsuit claims Facebook illegally maintains its monopoly through a “buy-or-bury strategy” that impedes competition in violation of the Sherman Act.
Joining the 46 states as plaintiffs are Guam and the District of Columbia. Only Alabama, Georgia, South Carolina, and South Dakota declined to join the lawsuit, according to Tech Crunch.
New York Attorney General Letitia James said Facebook’s domination of the market is illegal as well as harmful.
“Today’s suit should send a clear message to Facebook and every other company that any efforts to stifle competition, reduce innovation, or cut privacy protections will be met with the full force of our offices,” James said.
According to the Facebook antitrust lawsuit, more than half the U.S. population over the age of 13 uses the platform to engage with people, groups and interests. Instead of paying for the platform, “users exchange their time, attention, and personal data.”
Facebook, in turn, makes money by selling “highly targeted advertising” to firms that attach value to user engagement.
“The more data Facebook accumulates by surveilling the activities of its users and the more time the company convinces users to spend engaging on Facebook services, the more money the company makes through its advertising business,” the Facebook antitrust lawsuit explains.
However, the plaintiffs say, Facebook has had a monopoly over the social networking market for nearly 10 years.
Facebook has 2.7 billion users and a market value of nearly $800 billion, Fox40 reported. The company’s CEO, Mark Zuckerberg, is the fifth-richest individual in the world.
The Facebook antitrust lawsuit argues that the company’s conduct has been partly driven by the fear of falling behind “in important new segments and that emerging firms were ‘building networks that were competitive with’ Facebook’s and could be ‘very disruptive to’ the company’s dominance.”
Facebook’s conduct allegedly denies its users product improvements, causing them to suffer a reduction in both the quality and variety of available content and privacy options.
“By eliminating, suppressing, and deterring the emergence and growth of personal social networking rivals, Facebook also harms advertisers in a number of ways, including less transparency to assess the value they receive from advertisements, and harm to their brand due to offensive content on Facebook services,” the lawsuit says.
The plaintiffs point to Facebook’s acquisition of WhatsApp and Instagram, each of which the lawsuit claims presented a “unique and dire threat to Facebook’s monopoly.”
Each of those platforms had large and fast-growing user networks and had the potential to encroach on Facebook’s position in the market.
Facebook acquired Instagram for $1 billion and WhatsApp for $19 billion, Fox40 reported.
“Facebook kept both services running after the acquisitions to fill the void, so they would not be replaced by another app with the potential to erode Facebook’s dominance,” the lawsuit states.
In terms of relief, the plaintiffs are asking the court to order an end to Facebook’s “anticompetitive conduct” now and in the future.
They are also asking that Facebook be restrained from any further acquisitions “at or in excess of $10 million” without notifying the states involved in this lawsuit.
The Facebook antitrust lawsuit also asks the Court to find Facebook’s acquisitions of Instagram and WhatsApp violated the Clayton Act.
Each state is seeking an award of costs, including attorneys’ fees, and any other relief the Court deems “appropriate to restore competitive conditions and lost competition and to prevent future violations.”
Separately, the Federal Trade Commission (FTC) filed a lawsuit in federal court against Facebook that would require a divestiture of the company’s assets, including Instagram and WhatsApp, prevent Facebook from imposing anticompetitive restrictions on developers and require Facebook to seek approval on any mergers or acquisitions in the future, according to Deadline.
Also separately, two consumers filed a recent Facebook antitrust class action lawsuit claiming the company intentionally misleads people about its data privacy protections in order to attract more users.
The plaintiffs in that case claim Facebook is in violation of interstate trade and commerce laws and has become unjustly enriched. They say the nationwide Class of Facebook users they seek to represent could number in the tens of millions.
What do you think of the Facebook antitrust lawsuit? Do you think the company has a monopoly? Tell us your thoughts in the comments section below.
The plaintiffs are represented by their respective attorneys general.
The Facebook Antitrust Lawsuit is State of New York, et al. v. Facebook Inc., Case No. unknown, in the U.S. District Court for the District of Columbia.
Read About More Class Action Lawsuits & Class Action Settlements:
62 thoughts onAttorneys General in 46 States Have Brought a Facebook Antitrust Lawsuit
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Please addme i have had data breaches with them i have a acct .please add me they need to be accountable .
Yes ! Add me , Facebook has turned into monopolizing us all and I have noticed they know too much about me so there is no privacy. Its is a scam for big money ! They are using us all when all we wanted was a platform to have fun and talk to our families and friends.
Why is it that if you look something up on your phone as soon as you are done the ads start popping up on Facebook they should not have that kind of control. Please add me
add me thank you
Please add me also
Add me please
Yes please add me! I think we the users should get paid for our information since it’s stolen from us and if you set your settings telling them you don’t agree to them using your info you can’t access the platform. They force you into agreeing to let them use your information it’s basically blackmail and or bullying! If my family wasn’t on the platform whom live 14 hours away i would stop using the platform. Facebook needs to be knocked down several notches and stop violating my constitutional rights and stop the bullying!!! I am right now banned until January 23rd from posting anything or from commenting on anything how is it they an get immunity from any kind of consequences? That i find absurd!
I think the user should be paid.
Why did Facebook connect everything they own to facebook? Add me please..
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Yes, Indeed Add Me As Well.
FB doesn’t realize all the different marketing strategies they’re using are illegal. If you have a room or Page on FB that’s generating a lot of traffic FB gives you the names of members that have donated and other privileges information to make money for them by setting up encouraging you to do fundraising and post advertisements. If you don’t they put you in FB jail denying you access to your page or posting over minor freedom of speech infractions.
It’s illegal similar to loansharking… FB let’s you use their APP in exchange you generate income for them through your FB family, friends are influence. They go in your phone arrange your picture list some favorites?
I can keep going I perform a public service they want me to do this do that… harassing me throughout the day on FB to engage more with their services… heartbreaking. They forgot the International Highway the Internet first belong to them. FB is abusing its authority and using its members as their monopoly of corruption expands..,, with the same concept to invade your privacy and use it to earn money.
Yes, Indeed Add Me As Well.
FB doesn’t realize all the different marketing strategies they’re using are illegal. If you have a room or Page on FB that’s generating a lot of traffic (likes or people) FB likes you.
FB gives you the names of members that have donated and other privileged confidential information about them insinuating you can make money on FB but in the very end it’s to make money for them. They want to train you how by setting you with their preferred process monitored by them.
They encourage you to do fundraising and post specific advertisements you can select for after I told them I’m not a business. . Mercy, If you don’t they put you in FB jail denying you access to your page or posting in your group.
It’s illegal what they’re doing it’s similar to loansharking… FB let’s you use their APPS to start a Page. I have a “Christian Inspirational Page” they’re happy with the traffic they have statistical data for every aspect of the Page geographic, age, gave to a fundraiser etc… They’re alright with Page it’s free to you as long as in exchange you generate income for them through your FB family, friends are influence.
They go in your phone arrange your picture list some favorites invasion of privacy?
I can keep going I perform a public service however, FB wants me to do this do that… harassing me throughout the day on FB to engage more with their services… also generate more followers its heartbreaking. FB forgot the International Highway the Internet doesn’t belong to them. FB is abusing its authority and is using its members as commodities fir their monopoly of corruption that’s expanding.,, with the same concept to give access, invade your privacy and use them to earn money.