A D.C. federal court on Monday dismissed lawsuits by the Federal Trade Commission and 48 U.S. states seeking to break up Facebook over its engagement in ‘anticompetitive practices.’
The FTC had alleged that Facebook engaged in “anticompetitive conduct” through its acquisition of messaging app WhatsApp and social-media app Instagram. However, Judge James E. Boasberg of the U.S. District Court for the District of Columbia wrote in his opinion that the FTC was unable to detail its methods for concluding that Facebook held a dominant market share of social networking services.
“The FTC has failed to plead enough facts to plausibly establish a necessary element of” its claims, “namely, that Facebook has monopoly power in the market for Personal Social Networking (PSN) Services,” Boasberg wrote. “The Complaint contains nothing on that score save the naked allegation that the company has had and still has a ‘dominant share of th[at] market (in excess of 60%).’”
Boasberg granted Facebook’s motion to dismiss the lawsuit, but gave the FTC time to file an emended complaint if the agency chooses to do so. The FTC will be able to file an emended complaint within 30 days.
In addition, the court also dismissed an antitrust suit brought by 48 state attorneys general, led by New York attorney general Letitia James.
Source: National Review
