Facebook Cries Foul On FTC’s Bid To Nix Dismissal Of Antitrust Lawsuit

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Facebook Antitrust Lawsuit Overview: 

• Who: Facebook responded to the Federal Trade Commission’s opposition to its latest motion to dismiss a lawsuit the agency has filed against it. 
• Why: The FTC claims Facebook has committed antitrust violations by monopolizing the social networking market.
• Where: The lawsuit is being heard in District of Columbia federal court.

Facebook has responded to the Federal Trade Commission’s (FTC) latest attempt to keep alive an antitrust lawsuit against the social networking company. 

Facebook, which recently changed its name to Meta Platforms Inc., argues the FTC’s monopolization claims rely on “inapposite statistics” and are only speculative assumptions. 

“The FTC did not state a valid claim before; it still has not stated a valid claim,” the company said. “Its case should now be dismissed with prejudice.”

The response comes after the FTC has opposed the company’s motion to dismiss with the agency arguing it has already adequately pleaded that Facebook participates in antitrust activities. 

Facebook, however, claims the FTC cannot plausibly establish the central points of its claims and that it has no factual support that the company is able to raise prices or restrict output in the social networking services market. 

“After an exhaustive pre-filing investigation, and examination of commercial data sources, the FTC has no measure of or means of measuring how much time people spend on Facebook or any other service in activities that constitute (personal social networking services), which neither Facebook nor any other industry participant recognizes, uses or tracks,” the company said.

Lawsuit Claims Facebook Has a Monopoly On The Social Networking Market

In its lawsuit, the FTC claims Facebook has monopolized social network services, namely by acquiring WhatsApp and Instagram, Law360 reports. 

Facebook argued in its motion to dismiss, however, that it is only speculative that consumers could have superior products if the company had not purchased Instagram or WhatsApp.

The FTC had its initial complaint dismissed in June after a judge ruled the agency failed to allege more than just that Facebook owned a large share of the market, Law360 reports. 

The agency included more statistics in an amended complaint, including data and metrics related to the time users spent on the platform each day and month, Law360 reports. 

A class action lawsuit was filed against Facebook last month by a consumer claiming the company injured investors by not disclosing allegedly harmful business practices. 

Do you believe Facebook has monopolized the social networking market? Let us know in the comments! 

The Facebook Antitrust Lawsuit is FTC v. Facebook Inc., Case No. 1:20-cv-03590, in the U.S. District Court for the District of Columbia. 

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