Sat. Jan 22nd, 2022


Following an initial push, the Federal Trade Commission’s no-confidence motion against Facebook, which recently withdrew its name, is moving forward.

In June, a U.S. federal judge ruled that the FTC’s initial argument that Facebook was exclusive was too vague. But the agency has refilled the case, and now, the same judge has ruled that the FTC’s revised lawsuit against Facebook could be “stronger and more detailed than ever” and move forward. The court rejected Facebook’s request to dismiss the lawsuit altogether, a decision that pushes against Facebook’s ongoing battle with government regulators over its market power.

The FTC is one of the most powerful U.S. regulatory agencies. If it wins its lawsuit against Facebook, it could have a big negative impact on the social media company.

“FTC staff has filed a strong revised complaint, and we are awaiting trial,” said Holly Vedova, director of the FTC Bureau of Competition, in a statement from Record.

Facebook, meanwhile, has said it believes it will eventually succeed in its fight against the FTC.

“We are confident that the evidence will reveal the fundamental weakness of the claims.” Our investments in Instagram and WhatsApp have transformed them into what they are today They’re good for competition, and good for people and businesses who like to use our products, “Meta company spokesman Chris Sgro said, in part, in a statement to Recode.

In June, the federal judge said The FTC has dismissed the initial lawsuit, Which was a big win for Facebook at the time. In response, the FTC retracted its case – and instead of adopting a new approach, it stuck to its main arguments against Facebook, this time supporting them in more detail. This is yet another sign that Push the controller to rein in The power of Facebook and other big tech companies like Amazon and Apple does not slow down when faced with obstacles.

The revised lawsuit includes new evidence of how the company engages in exclusive behavior to beat its competitors and retains its users on its platform without sufficient pressure to improve the quality of its products. The FTC’s argument is that Facebook has failed to make meaningful innovations in its mobile app over the past few years. Instead, the FTC uses an illegal “buy or bury” strategy to either restrict their access to the Facebook platform, block out external apps, or acquire apps like Instagram and WhatsApp that were successful competitors.

The lawsuit further alleges that Facebook “tempted” third-party app developers to invite competitive threats, such as Path and Circle, to be part of Facebook’s open platform. Once these developers become dependent on the access they offer to Facebook, Facebook will change its pace, the lawsuit claims. In the end, the FTC complained, all of this hurts consumers by using Facebook’s social media ecosystem, with fewer alternative apps. In this claim, the federal judge ruled that the FTC did not have sufficient evidence. But it said the FTC could go ahead with its claim that Facebook was engaged in anti-competitive business practices when it bought competitors like Instagram and WhatsApp.

“Facebook’s lack of business acumen and technical talent was enough to survive the transition to mobile. After failing to compete with new inventors, Facebook illegally buys or buries them if their popularity becomes an existential threat, “Vedova said in a press release announcing the revised lawsuit in August.

Facebook in August, just hours after the revised lawsuit Tweet Feedback is a thread.

The company argued that Facebook had no “legitimate claim” to an exclusive right, and noted that the FTC cleared the company’s acquisition of WhatsApp and Instagram when they originally occurred.

“It is unfortunate that the FTC has chosen to pursue this unqualified lawsuit, despite the court dismissing the allegations and concluding that the claims have no basis,” Facebook wrote.

The company plans to release a splash product New Virtual Reality Work Conferencing App – Complete with Facebook CEO Mark Zuckerberg is making a hit on CBS – That new case was expected to drop that morning. Ironically, Facebook’s new virtual reality conference tool is similar in many ways to small companies’ existing software, showing how existing antitrust laws do not prevent technology companies from copying each other in real time.

The amended case also responds to Facebook’s request for FTC chair Lina Khan. Withdraw yourself for claiming that the technical company is a conflict of interest Because of his past academic work, he criticized the market power of technology companies like Amazon. Something There are legislators like Sen. Elizabeth Warren (D-MA) He criticized the pressure on Khan as an attempt to “bully” the FTC. But that doesn’t seem to be working – the FTC has reiterated in the amended case that it has no plans to abandon Khan. A federal judge ruled Tuesday that there was no sufficient basis for Khan’s withdrawal.

In the past, Facebook has said that the success of companies like TikTok and Snap proves that there is healthy competition in the social media industry. The revised lawsuit claims that TikTok is not actually a competitor to Facebook because it is primarily used to “share video content with viewers who do not know the poster personally, instead of connecting with friends and family and engaging personally.”

It is too early to say whether the lawsuit will be successful and how it could significantly affect Facebook’s business. Facebook, which has enough resources to fight the lawsuit, will come up with the most compelling defense as to why it is not actually exclusive. However, the court’s rejection of Facebook’s efforts to close the case shows that the FTC – led by Khan – is not backing down.

Updated January 11, 2022, 3:00 pm PT: This article was updated to include new legal procedures in the case.

Updated August 19, 12:27 pm PT: This article has been updated to include comments from Facebook, which it posted on Twitter.





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