For example, in 2013, Twitter launched the app Vine, which allowed users to shoot and share short video segments. The FTC, meanwhile, has been conducting its own antitrust investigation of ⦠As noted by several legal commentators in popular publications such as Forbes and The New York Times, these suits will undoubtedly feature prominently in the FTCâs current case against Facebook. The FTC began an antitrust investigation into Facebook in June 2019, as it rounded off a separate probe into the company over privacy violations related to ⦠Facebookâs acquisition of WhatsApp allegedly both neutralizes the prospect that WhatsApp itself might threaten Facebookâs personal social networking monopoly and ensures that any future threat will have a more difficult time gaining scale in mobile messaging. FTC Sues Facebook. The FTC settled a privacy investigation into that incident for $5 billion, but since the settlement value represented only 9% of Facebookâs 2018 revenue, lawmakers worried that financial penalties such as these would not sufficiently deter Facebook in the future. From 'Galaxy Quest' to F-bombs: A year of video conference mishaps. âFacebookâs actions to entrench and maintain its monopoly deny consumers the benefits of competition. FTC sues Facebook: What does it mean for social media users? Copyright Alternative in Small-Claims Enforcement (CASE) Act, Execution of Judgements on the Blockchain- A Practical Legal Commentary, A Potential Eligibility Safe Harbor for Diagnostic Patients Creates More Confusion in the Alive/Mayo Test, France.com, Inc. v. The French Republic: Fourth Circuit Holds France Immune From Trademark Infringement Claims. FTC v. Facebook, Inc., File No. NOTE: The Commission issues a complaint when it has âreason to believeâ that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. Again, according to the complaint, Facebook chose to buy an emerging threat rather than compete, and announced an agreement in February 2014 to acquire WhatsApp for $19 billion. More than 40 attorneys general ultimately signed onto Wednesday's complaint. The FTC also can sue companies in its in-house administrative court but chose to file the Facebook case in federal court where a group of states also sued the company. Moreover, Iain Murray of Fortune points out that many entrepreneurs create startups with the express hope of being bought out by companies like Facebook. Today, the Federal Trade Commission has announced it is suing Facebook, one of the largest social networks out there, and aims to make some changes. Commissioners Noah Joshua Phillips and Christine S. Wilson voted no. The Federal Trade Commission (âFTCâ) has sued Facebook for anticompetitive conduct under Section 2 of the Sherman Act, which prohibits improper monopolization of a market. Tech for the People December 12, 2020. According to the FTC, this harm is borne by both consumers and advertisers. In 2012, the FTC charged Facebook with eight separate privacy-related violations, including that the company made deceptive claims about consumersâ ability to control the privacy of their personal data. [Complaint]. FTC v. Facebook, Inc., File No. Yet some have expressed concern about Facebook monetizing usersâ personal information in this way. The complaint alleges that Facebook initially tried to compete with Instagram on the merits by improving its own offerings, but Facebook ultimately chose to buy Instagram rather than compete with it. Back in 2000, for instance, the FTC famously prevailed in its antitrust suit against Microsoft, only to see the decision overturned in a 2001 appeal. Around the same time, according to the complaint, Facebook perceived that âover-the-topâ mobile messaging apps also presented a serious threat to Facebookâs monopoly power. In December, the Federal Trade Commission voted 3-2 to sue Facebook for illegally maintaining a monopoly in social networking. In support of this claim, the FTC cites Facebookâs 2012 acquisition of Instagram, its 2014 acquisition of WhatsApp, its API access restrictions, and the way these actions have allegedly harmed Facebookâs competition. Instagram, a rapidly growing startup, emerged at a critical time in personal social networking competition, when users of personal social networking services were migrating from desktop computers to smartphones, and when consumers were increasingly embracing photo-sharing. @ChanceHMiller. Either way, this case will leave long lasting impacts. âPersonal social networking is central to the lives of millions of Americans,â said Ian Conner, Director of the FTCâs Bureau of Competition. This course of conduct harms competition, leaves consumers with few choices for personal social networking, and deprives advertisers of the benefits of competition. The Sherman Antitrust Act of 1890 and the Clayton Antitrust Act of 1914 provide most substantive antitrust law, while the Federal Trade Commission Act of 1914 designates the FTC as the governmental agency responsible for enforcing these laws. Our aim is to roll back Facebookâs anticompetitive conduct and restore competition so that innovation and free competition can thrive.â, Video by Ian Conner, Director of the Bureau of Competition Download MP4 (11.43 MB)Statement by Ian Conner, Director of the Bureau of Competition. According to the lawsuit filed today, the FTC alleges Facebook is âillegally maintaining its personal social networking monopoly through a years-long course of anticompetitive conductâ. Facebook also faces a lawsuit from dozens of attorneys general who claim it ⦠Participating Attorneys General include: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. Last year alone, Facebook generated revenues of more than $70 billion and profits of more than $18.5 billion. Originally posted Dec. 10 on Tech for the People. Simply put, when it comes to the business of consumer privacy, itâs no longer business as usual at Facebook. The lawsuit comes after a lengthy investigation in cooperation with a coalition of attorneys general of 46 states, the District of Columbia, and Guam. The complaint alleges that Facebook has enforced these policies by cutting off API access to blunt perceived competitive threats from rival personal social networking services, mobile messaging apps, and other apps with social functionalities. According to the FTCâs complaint, Facebook is the worldâs dominant personal social networking service and has monopoly power in a market for personal social networking services. WASHINGTONâThe Federal Trade Commission and 46 states sued Facebook Inc. on Wednesday, accusing the social-media giant of buying and freezing out small startups to choke competition. The Federal Trade Commission works to promote competition, and protect and educate consumers. If the FTC prevails, it may well portend âa new era of antitrust enforcement.â If it loses, however, the precedent created may make it even harder to successfully pursue antitrust claims in the future. In a recent filing, Facebook noted that the Supreme Court unanimously ruled earlier in April that the FTC does not have power under a provision known as 13(b) to go to court to try to force defendants to pay back money.. According to the FTC, Facebookâs conduct prevents the emergence of potentially innovative social media, thereby reducing the range of services available to consumers. 283 3 minutes read. In December 2020, the Federal Trade Commission (FTC) and 46 states launched an antitrust lawsuit against Facebook. Much more recently, in 2020, the FTC successfully sued Visa to prevent its acquisition of Plaid, and the Justice Department sued Google for allegedly maintaining an illegal monopoly. Harvard Law SchoolWasserstein Hall, Suite 30501585 Massachusetts AveCambridge, MA 02138, Copyright © 2021 Harvard Journal of Law and Technology. The Commission vote to authorize staff to file for a permanent injunction and other equitable relief in the U.S. District Court for the District of Columbia was 3-2. 1910134 (FTC Dec. 9, 2020). Chance Miller. The Federal Trade Commission has announced that it is suing Facebook. As for advertisers, the FTC lists the quantity of users to whom these advertisers could market their products, lowered advertising prices, innovation, quality, and choice among the benefits that may be forfeited due to Facebookâs anticompetitive conduct. FTC Sues to Break Up Facebook, Instagram, and WhatsApp by Ryan Glasspiegel December 9, 2020, 3:25 pm updated December 13, 2020, 9:50 pm 10 Comments In bombshell news, the FTC announced today that it is suing Facebook and calls for the acquisitions of Instagram and WhatsApp to be undone. Meanwhile, Facebook's recent emotional experiment has prompted a new campaign that challenges Facebook users to refrain from visiting the site for 99 days. Three statutes, all passed around the turn of the previous century, serve to prevent this scenario by ensuring fair competition across the economy. The Federal Trade Commission (FTC) and 45 other states sued Facebook for alleged anti-competitive behaviour in December. This lawsuit is the result of ⦠Not surprisingly, Amazon is not happy with the suit. 1910134 (FTC Dec. 9, 2020). The Federal Trade Commission along with 46 U.S. states, plus the District of Columbia and Guam, announced a lawsuit this week against Facebook. Alex Maged is a 3L at Harvard Law School. As a result, he claims that the current suit will actually suppress, rather than stimulate, entrepreneurial innovation. Echoing these concerns, the FTC asserts in its suit that Facebook âexploits a rich set of data about usersâ activities, interests, and affiliations.â Such concerns previously came to a head during the Cambridge Analytica scandal of 2019. The FTCâs lawsuit is seeking to force Facebook to peel off acquisitions Instagram and WhatsApp.  You can learn more about how competition benefits consumers or file an antitrust complaint. The FTC is seeking a permanent injunction in federal court that could, among other things: require divestitures of assets, including Instagram and WhatsApp; prohibit Facebook from imposing anticompetitive conditions on software developers; and require Facebook to seek prior notice and approval for future mergers and acquisitions. Why the FTC sued Facebook in 2012. The FTC lawsuit and the state lawsuits both demand the acquisition of Instagram and WhatsApp to be retroactively judged as being illegal. Shortly after, the FTC began investigating whether Facebook violated laws intended to promote competition. In this suit, by contrast, the FTC seeks to enjoin Facebook from some of the very practices responsible for its dominance - arguably, a much more significant threat to the company. âFacebook has kept WhatsApp cabined to providing mobile messaging services rather than allowing WhatsApp to become a competing personal social networking provider, and has limited promotion of WhatsApp in the United States,â the FTC states in another partially redacted portion of the lawsuit. The FTC and 48 attorneys general have sued the tech giant Facebook, alleging it "neutralized" rivals in a massive antitrust lawsuit The Federal Trade Commission (FTC) announced that it has sued Facebook. Facebook had challenged that use in its ⦠In particular, Facebook allegedly has made key APIs available to third-party applications only on the condition that they refrain from developing competing functionalities, and from connecting with or promoting other social networking services. The complaint also alleges that Facebook, over many years, has imposed anticompetitive conditions on third-party software developersâ access to valuable interconnections to its platform, such as the application programming interfaces (âAPIsâ) that allow the developersâ apps to interface with Facebook. The lawsuit follows an investigation by the FTCâs Technology Enforcement Division, whose staff cooperated closely with a coalition of attorneys general, under the coordination of the New York State Office of the Attorney General. April 8, 2021. Brent Mobbs is a 1L at Harvard Law School. 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The complaint alleges that, by 2012, WhatsApp had emerged as the clear global âcategory leaderâ in mobile messaging. James announced the multi-state Facebook antitrust investigation that resulted in Wednesday's suit last year, shortly after Facebook revealed it was facing a separate FTC antitrust investigation. The agency also wants Amazon to forfeit any money it made on those purchases, since Amazon gets a 30 percent cut. Facebookâs acquisition of Instagram for $1 billion in April 2012 allegedly both neutralizes the direct threat posed by Instagram and makes it more difficult for another personal social networking competitor to gain scale. Alabama, Georgia, South ⦠A central issue in the current suit will be defining the harm posed by Facebookâs allegedly anticompetitive conduct. The FTC has a pair of options if it sues Facebook: It could bring a case in federal court or it could file a complaint in its in-house legal system, where the ⦠As noted by Forbes, Microsoftâs stock fell 14% when it lost its first antitrust suit, and did not recover for approximately fifteen years. FTC Lawsuit against Facebook explained.  This unmatched position has provided Facebook with staggering profits. The FTC has a pair of options if it sues Facebook: It could bring a case in federal court or it could file a complaint in its in-house legal system, where the ⦠The FTC alleges that Facebook is illegally maintaining its personal social network monopoly through a years-long course of anticompetitive conduct. U.S. competition enforcers are preparing a possible antitrust lawsuit against Facebook Inc., according to a person familiar with the matter. In its complaint against Facebook, the FTC had used 13(b) to seek an injunction, but not necessarily money. 346. - Dec. 9th 2020 12:03 pm PT. According to the FTCâs complaint, Facebook targeted potential competitive threats to its dominance. Following a lengthy investigation in cooperation with a coalition of attorneys general of 46 states, the District of Columbia, and Guam, the complaint alleges that Facebook has engaged in a systematic strategyâincluding its 2012 acquisition of up-and-coming rival Instagram, its 2014 acquisition of the mobile messaging app WhatsApp, and the imposition of anticompetitive conditions on software developersâto eliminate threats to its monopoly. The Federal Trade Commission today sued Facebook, alleging that the company is illegally maintaining its personal social networking monopoly through a years-long course of anticompetitive conduct. On Wednesday, the Federal Trade Commission (FTC) filed an opposition to Facebookâs motion to dismiss the FTCâs antitrust lawsuit against the tech giant. Over the years, the FTC has brought numerous cases under these statutes, including several high-profile decisions which have been widely noted in the press. The complaint alleges that Facebook executives, including CEO Mark Zuckerberg, quickly recognized that Instagram was a vibrant and innovative personal social network and an existential threat to Facebookâs monopoly power. But while consumers and advertisers might possibly benefit if the FTC prevails, others are concerned about the negative consequences that investors and entrepreneurs might face. The Federal Trade Commission (âFTCâ) has sued Facebook for anticompetitive conduct under Section 2 of the Sherman Act, which prohibits improper monopolization of a market. By way of remedy, the FTC seeks a permanent injunction that would compel Facebook to divest from Instagram and WhatsApp, and to gain regulatory approval prior to engaging in similar transactions in the future, among other requirements. In response, according to the complaint, Facebook shut down the API that would have allowed Vine to access friends via Facebook. Lawmakers have long been concerned with the harms borne by consumers when monopolies dominate an industry and lose their incentive to compete for market share. FTC Sues Facebook for Illegal Monopolization, Facebook Claims âRevisionist Historyâ December 14, 2020 by Brittany Siminitz It has not been a great year for Facebookâor for its reputation, at least. Consumers, the FTC claims, are harmed by Facebookâs conduct because competition would propel innovation, improve quality of service, and, vitally, increase consumer choice among services. In particular, the complaint alleges that Facebookâs leadership understoodâand fearedâthat a successful mobile messaging app could enter the personal social networking market, either by adding new features or by spinning off a standalone personal social networking app. Indeed, most of Facebookâs revenue is derived from selling ads and user data to advertisers; in 2019 alone, these sales generated $70 billion in revenue for the social media giant. The FTC also claims that as a result of Facebookâs conduct, advertisers are restricted to targeting fewer social media platforms, which harms their revenue. The FTC could ask a federal judge to pause a state suit against Facebook while its in-house trial is underway. The Federal Trade Commission today sued Facebook, alleging that the company is illegally maintaining its personal social networking monopoly through a years-long course of anticompetitive conduct. FTC Preparing Possible Antitrust Suit Against Facebook No final decision has been made on the outcome of a yearlong probe as discussions with the social-media giant continue
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