Social media giant Meta, formerly known as Facebook, is requesting a federal judge to dismiss an antitrust lawsuit filed by the Federal Trade Commission (FTC) in December 2020. The FTC is aiming to force Meta to sell Instagram and WhatsApp, which it acquired in 2012 and 2014 respectively.
The crux of the case is the FTC’s argument that these acquisitions stifled competition in the social media market. Meta argues the opposite, claiming the purchases benefited both consumers and businesses and were originally approved by the FTC. “The FTC reviewed both acquisitions years ago and allowed them to close. The decision to revisit done deals is tantamount to announcing that no sale will ever be final,” Meta said in a statement.
They further argue the FTC’s definition of the social media market is too narrow, excluding platforms like YouTube and TikTok.
This lawsuit has seen its share of twists. In June 2021, an initial complaint by the FTC was dismissed. However, the FTC came back stronger with an amended suit in August 2021, which survived Meta’s attempt to have it thrown out again.
The FTC has until May 30th to respond to Meta’s latest plea. A win for the FTC could significantly alter the online landscape, potentially weakening Meta’s grip on social media.
This lawsuit is part of a larger trend. The FTC and the Department of Justice have been increasingly targeting major US tech companies with antitrust suits. A similar case against Google’s search engine dominance is expected to reach a verdict by the end of 2024.
The crux of the case is the FTC’s argument that these acquisitions stifled competition in the social media market. Meta argues the opposite, claiming the purchases benefited both consumers and businesses and were originally approved by the FTC. “The FTC reviewed both acquisitions years ago and allowed them to close. The decision to revisit done deals is tantamount to announcing that no sale will ever be final,” Meta said in a statement.
They further argue the FTC’s definition of the social media market is too narrow, excluding platforms like YouTube and TikTok.
This lawsuit has seen its share of twists. In June 2021, an initial complaint by the FTC was dismissed. However, the FTC came back stronger with an amended suit in August 2021, which survived Meta’s attempt to have it thrown out again.
The FTC has until May 30th to respond to Meta’s latest plea. A win for the FTC could significantly alter the online landscape, potentially weakening Meta’s grip on social media.
This lawsuit is part of a larger trend. The FTC and the Department of Justice have been increasingly targeting major US tech companies with antitrust suits. A similar case against Google’s search engine dominance is expected to reach a verdict by the end of 2024.
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