United States of America: District Court of Columbia authorizes FTC lawsuit on Facebook for creation of a monopoly position

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Description

District Court of Columbia authorizes FTC lawsuit on Facebook for creation of a monopoly position

The District Court of Columbia has denied Facebook's motion to dismiss the renewed Complaint submitted by the Federal Trade Commission (FTC) to sue Facebook for the maintenance of a monopoly through anticompetitive behaviour. According to the Court, with the amended complaint the FTC has "cleared the pleading bar and may proceed to discovery". The judge decided that the FTC has gathered enough facts to "plausibly establish" that Facebook exercises monopoly power in the personal social networking market, that its market share was protected by entry barriers and that the monopoly power was unlawfully maintained through the acquisitions of Instagram and WhatsApp. However, the Court did not allow allegations related to Facebook's interoperability policies because the company abandoned them in 2018. Finally, the Court also dismissed Facebook's argument for recusal of Lina Khan's vote to file the amended complaint. According to Facebook, Khan's past writings prejudged her liability, but the Court dismissed such accusation because Khan "was acting in a prosecutorial capacity".

Original source

Scope

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

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