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facebook hit with massive antitrust lawsuit from 46 states

AVATAR Taylor Hatmaker
Taylor Hatmaker
Culture Editor, TechCrunch
December 9, 2020
facebook hit with massive antitrust lawsuit from 46 states

A substantial group of states initiated an antitrust legal challenge on Wednesday, alleging that Facebook engaged in anti-competitive conduct through monopolistic strategies. The lawsuit is supported by the attorneys general from 48 states, along with representatives from Guam and the District of Columbia, with only South Dakota, South Carolina, Alabama, and Georgia choosing not to participate.

The legal action, which examines Facebook’s conduct throughout its history, claims the company acquired rival businesses “illegally” and through “predatory” means to expand and maintain its dominance in the market. The acquisitions of Instagram and WhatsApp are specifically highlighted as key instances of this behavior.

The states are requesting that the U.S. District Court for the District of Columbia issue an order preventing Facebook from making any further acquisitions valued at $10 million or more without first providing notice to the states involved in the lawsuit. The suit also requests that the court grant “any further remedies it deems appropriate,” potentially including the sale or reorganization of companies acquired unlawfully, or of existing Facebook assets or business operations.

The lawsuit was spearheaded by a coalition of attorneys general from California, Colorado, Florida, Iowa, Nebraska, North Carolina, Ohio, Tennessee, and the District of Columbia, with New York Attorney General Letitia James leading the initiative.

“Nearly every state in the country has joined this non-partisan lawsuit because Facebook’s attempts to control the market were both unlawful and detrimental,” stated James. “This lawsuit should clearly demonstrate to Facebook, and to all companies, that any actions taken to suppress competition, hinder innovation, or diminish privacy safeguards will be met with the full extent of our legal authority.”

This state-level antitrust case against Facebook emerged concurrently with the FTC’s decision to pursue its own antitrust lawsuit against the social media company. This decision concluded a 20-month investigation into Facebook’s business practices, including its purchases of WhatsApp and Instagram—two previously separate applications that were integrated into Facebook’s operations. The FTC is now advocating for the separation of these companies into independent entities.

Facebook has consistently faced criticism regarding its significant influence and has been frequently summoned to appear before Congress to address related concerns; however, the coordinated antitrust efforts at both the federal and state levels represent a significant new challenge for the company.

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#facebook#antitrust#lawsuit#states#monopoly#competition

Taylor Hatmaker

Taylor previously reported on topics including social media, video games, and cultural trends for TechCrunch.
Taylor Hatmaker