United States of America: FTC files amended complaint against Facebook for alleged creation and maintenance of a monopoly position

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Description

FTC files amended complaint against Facebook for alleged creation and maintenance of a monopoly position

On 19 August 2021, the Federal Trade Commission (FTC) filed a renewed antitrust complaint against Facebook with the United States District Court for the District of Columbia. Similar to the original lawsuit, where the FTC sued Facebook for the alleged maintenance of a monopoly through anticompetitive behaviour and namely the acquisitions of Instagram and WhatsApp, the amended complaint also revolves around Facebook's maintenance of a monopoly and violations of federal antitrust laws. In light of the original complaint being dismissed by the U.S. District Court for insufficient evidence in June, the FTC filed a more detailed complaint (80 pages instead of 53) this time around. More specifically, the FTC alleges Facebook to have maintained a monopoly in the social media market since 2011 through acquisitions and eliminations ("buy-or-bury") of rival companies. Like in the original lawsuit, the FTC still criticizes the acquisitions of Instagram and WhatsApp and the blocking of rivals for accessing Facebook's application programming interface. Facebook's deadline to file a legal response is 4 October 2021.

Original source

Scope

Policy Area
Competition
Policy Instrument
Unilateral conduct regulation
Regulated Economic Activity
platform intermediary: user-generated content
Implementation Level
national
Government Branch
executive
Government Body
competition authority

Complete timeline of this policy change

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2020-12-09
under deliberation

On December 9 2020, the Federal Trade Commission (FTC) and 46 States announced that they have sued …

2021-06-28
rejected

On 28 June 2021, the United States District Court for the District of Columbia (D.D.C.) dismissed t…

2021-08-19
under deliberation

On 19 August 2021, the Federal Trade Commission (FTC) filed a renewed antitrust complaint against F…

2022-01-11
in force

The District Court of Columbia has denied Facebook's motion to dismiss the renewed Complaint submit…

2023-04-27
in force

On 27 April 2023, the US Court of Appeals for the DC Circuit affirms the lower-court ruling that di…

Key regulatory dimensions

Regulated subjects

The businesses, government agencies or individuals affected by this policy or regulatory change.
defendant
1
Type Private organisation
Economic activity platform intermediary: user-generated content
Category Firm-specific

Policy change by business practice

The detailed activities within the scope of this policy or regulatory change.
user content: any format: marketing (any form)
Regulatory tool
Merger approval requirement
Prohibition of supplementary contractual obligations
Prohibition of targeted trading partner under-cutting or other discrimination
Sanctions
Regulated subjects
1
texting: app-based: transmission
Regulatory tool
Merger approval requirement
Prohibition of supplementary contractual obligations
Prohibition of targeted trading partner under-cutting or other discrimination
Sanctions
Regulated subjects
1

Policy change by business practice

The detailed activities within the scope of this policy or regulatory change.

user content: any format: marketing (any form)

texting: app-based: transmission