WASHINGTON: A US judge on Monday dismissed the blockbuster antitrust action against him Facebook The filing was filed by federal and state regulators last year, helping to raise the social media giant’s value above $1 trillion for the first time.
Judge James Bosberg of the US District Court in Washington DC in December dismissed cases filed by the Federal Trade Commission and more than 40 states that could back the acquisition of Facebook. instagram and messaging platform WhatsApp.
The judge said in a 53-page opinion that the “federal lawsuit “failed to plead sufficient facts to establish a necessary element … that Facebook has monopoly power in the market for personalized social networking services,” The judge, while allowing the opportunity to the authorities, said the matter.
In lawsuits filed in December, which were consolidated in federal court, U.S. and state officials called for the split of Instagram and WhatsApp, arguing that Facebook had “used its monopoly to deny consumers the benefits of competition.” To maintain and maintain”.
The judge issued a separate opinion dismissing the case by the states, saying the attorney general had waited too long to bring up the case for the acquisition of Instagram in 2012 and WhatsApp in 2014.
The judge said the FTC complaint “says almost nothing concrete on the important question of how much power Facebook really had … It’s almost as if the agency expects the court to accept the conventional wisdom that Facebook is a monopoly.” is.”
The federal agency based its case on the “vague” claim that Facebook controlled more than 60 percent of the social networking market, but the FTC “also does not allege what it is measuring.”
Bosberg wrote that “the market at issue here is unusual in several ways, including that products are not sold for a price … the court is thus unable to understand that the agency’s ’60 percent- What is the ‘plus’ figure. Even mentioning, let alone being able to infer the underlying facts that can substantiate it.”
Yet he ruled that “this flaw can be remedied by soliciting,” allowing the federal agency the possibility of refining the action.
Facebook shares surged following the decision, which raised the company’s market valuation above $1 trillion for the first time.
In a statement, the company said, “We are pleased that today’s ruling recognizes a flaw in the government complaints filed against Facebook. We compete fiercely every day to earn people’s time and attention and create the best for people and businesses Will continue to deliver products. Use our services.”
The ruling comes a week after a US Congressional panel advanced legislation that would lead to sweeping changes to antitrust laws and give regulators more power to crack down on large tech firms, specifically targeting Facebook, Google, heroine and Apple.
The action comes amid growing concerns over the power of major tech firms, which increasingly dominate key economic sectors and have seen steady growth during the pandemic.
Critics of Facebook said the decisions highlight the need to revise antitrust laws for the Internet age.
“This is a setback — not the end — in the FTC’s fight against a major Big Tech monopoly like Facebook,” said Charlotte Sleman of consumer group Public Knowledge.
“The FTC must continue this important work, as the judge indicated that the agency may still file a new complaint if it can address these concerns. Also, Congress’ The ongoing work to pass new laws and regulations to address the power of Big Tech, as well as sweeping antitrust reforms, is especially important and urgent now.
Judge James Bosberg of the US District Court in Washington DC in December dismissed cases filed by the Federal Trade Commission and more than 40 states that could back the acquisition of Facebook. instagram and messaging platform WhatsApp.
The judge said in a 53-page opinion that the “federal lawsuit “failed to plead sufficient facts to establish a necessary element … that Facebook has monopoly power in the market for personalized social networking services,” The judge, while allowing the opportunity to the authorities, said the matter.
In lawsuits filed in December, which were consolidated in federal court, U.S. and state officials called for the split of Instagram and WhatsApp, arguing that Facebook had “used its monopoly to deny consumers the benefits of competition.” To maintain and maintain”.
The judge issued a separate opinion dismissing the case by the states, saying the attorney general had waited too long to bring up the case for the acquisition of Instagram in 2012 and WhatsApp in 2014.
The judge said the FTC complaint “says almost nothing concrete on the important question of how much power Facebook really had … It’s almost as if the agency expects the court to accept the conventional wisdom that Facebook is a monopoly.” is.”
The federal agency based its case on the “vague” claim that Facebook controlled more than 60 percent of the social networking market, but the FTC “also does not allege what it is measuring.”
Bosberg wrote that “the market at issue here is unusual in several ways, including that products are not sold for a price … the court is thus unable to understand that the agency’s ’60 percent- What is the ‘plus’ figure. Even mentioning, let alone being able to infer the underlying facts that can substantiate it.”
Yet he ruled that “this flaw can be remedied by soliciting,” allowing the federal agency the possibility of refining the action.
Facebook shares surged following the decision, which raised the company’s market valuation above $1 trillion for the first time.
In a statement, the company said, “We are pleased that today’s ruling recognizes a flaw in the government complaints filed against Facebook. We compete fiercely every day to earn people’s time and attention and create the best for people and businesses Will continue to deliver products. Use our services.”
The ruling comes a week after a US Congressional panel advanced legislation that would lead to sweeping changes to antitrust laws and give regulators more power to crack down on large tech firms, specifically targeting Facebook, Google, heroine and Apple.
The action comes amid growing concerns over the power of major tech firms, which increasingly dominate key economic sectors and have seen steady growth during the pandemic.
Critics of Facebook said the decisions highlight the need to revise antitrust laws for the Internet age.
“This is a setback — not the end — in the FTC’s fight against a major Big Tech monopoly like Facebook,” said Charlotte Sleman of consumer group Public Knowledge.
“The FTC must continue this important work, as the judge indicated that the agency may still file a new complaint if it can address these concerns. Also, Congress’ The ongoing work to pass new laws and regulations to address the power of Big Tech, as well as sweeping antitrust reforms, is especially important and urgent now.
.