Facebook Faces Another Antitrust Class Action Lawsuit

A Wisconsin man is alleging Facebook has acquired monopoly power in the social media market — and that it’s hurting its millions of consumers, according to the latest class action lawsuit against the social media giant. 

In a 75-page complaint filed in the District Court for the Northern District of California Monday, plaintiff Joe Kovacevich and his lawyers laid out claims that Facebook has achieved a monopoly “by means of predatory, exclusionary and anticompetitive conduct.” 

Facebook allegedly engaged in a scheme to gain market share by inducing consumers to join Facebook through a pattern of deception regarding its data privacy protections and its commercial surveillance, the class action claims.

Despite Facebook’s claims about user privacy, it hid the extent to which it collected and shared user data in a bid to eliminate competition. The social media giant also chose to restrict emerging competitors from gaining access to valuable user data if they refused to sell their business to Facebook. 

According to the lawsuit, Facebook went on to weaponize the data it obtained from consumers by “means of deception” to destroy competition through its strategy of “acquire, copy, or kill”, resulting in a monopoly on the social media market, decreasing consumer choice and reducing the value of people’s data. 

As well as owning Facebook, the social corporation also owns Instagram, Messenger, WhatsApp, and Oculus, which the class action alleges are two examples of Facebook executing its antitrust plan. Each individual social media platform previously posed a threat to Facebook’s ability to monopolize, and so Facebook chose to acquire the platforms, the class action contends.

“By eliminating competition and obtaining and maintaining monopoly power over the Social Network Market… Facebook was able to, and did, artificially decrease compensation to consumers for their information and attention and provide lower value to consumers than it would have provided in a competitive market,” the class action stated.

Kovacevich is seeking to represent a nationwide Class of people who maintained a Facebook profile at any point since 2007, with the filing acknowledging this likely includes tens of millions of people. 

Kovacevich is seeking an order to certify the class action, a trial by jury and an injunction that would prohibit Facebook from continuing the alleged antitrust behaviors. He is also asking for third-party auditors to be appointed to evaluate Facebook’s data privacy, commercial surveillance and acquisition conduct. 

The complaint seeks either treble damages or restitution of all amounts wrongfully charged to Kovacevich and members of the Class.

Facebook has been at the receiving end of a number of class actions. This month, a class action lawsuit was filed arguing major internet companies including Facebook are choking the competition over digital ad space with unfair monopolies over the systems that serve them. 

In January, a federal judge in California dismissed a class action case against Facebook that claimed the social media network improperly used location data.

Meanwhile, the tech giant has teamed up with eBay and Google to urge the Supreme Court to reverse a Court of Appeals decision they say allows costly privacy class action lawsuits to move forward against them, without plaintiffs having to prove “actual harm.”

Have you been affected by Facebook’s alleged antitrust behaviors? Share your experience in the comments below.

The plaintiffs are represented by Dennis J. Stewart, Daniel C. Hedlund, Catherine K. Smith, Daniel J. Nordin and Ling S. Wang of Gustafson Gluek PLLC; Kenneth A. Wexler, Melinda J. Morales, Mark J. Tamblyn of WEXLER WALLACE LLP; Simon B. Paris, Esq. and Patrick Howard, Esq. of SALTZ, MONGELUZZI & BENDESKY, P.C.; E. Powell Miller and Sharon S. Almonrode of THE MILLER LAW FIRM, P.C. and Dianne M. Nast, Esquire of NASTLAW LLC.

The Facebook Kovacevich Antitrust Class Action Lawsuit is Joe Kovacevich et al. v. Facebook, Inc., Case No. 5:21-cv-01117 in the U.S. District Court for the Northern District of California. 

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