Facebook Hits $1 Trillion Value After US Judge Rejects Antitrust Complaints

The dismissal was the first big blow to state, federal lawsuits against Big Tech firms seeking to rein in alleged abuses of their market power.

Facebook Hits $1 Trillion Value After US Judge Rejects Antitrust Complaints

FTC and group of states filed separate lawsuits last year accusing Facebook of breaking antitrust law

Highlights
  • Judge said FTC failed to show that Facebook had monopoly power
  • He also dismissed a lawsuit by multiple US states
  • Facebook had asked for the lawsuits to be dismissed
Advertisement

A US judge on Monday dismissed federal and state antitrust complaints against Facebook that sought to force the social media company to sell Instagram and WhatsApp, saying the federal complaint was "legally insufficient."

Facebook shares rose more than 4 percent after the ruling. The share price rise put Facebook's market capitalisation over $1 trillion (roughly Rs. 74,29,850 crores) for the first time.

The dismissal was the first big blow to state and federal lawsuits against Big Tech firms last year seeking to rein in alleged abuses of their massive market power.

Judge James Boasberg of the US District Court for the District of Columbia said the FTC failed to show that Facebook had monopoly power in the social-networking market but said the FTC could file a new complaint by July 29.

He also dismissed a lawsuit by multiple US states, saying they waited too long to challenge the acquisitions of Instagram and WhatsApp in 2012 and 2014 respectively. The judge did not invite the states to refile their complaint.

A spokesperson for the New York Attorney General's office said it was "considering our legal options."

Facebook had asked for the lawsuits to be dismissed.

Regarding the FTC lawsuit, the judge wrote: "Although the court does not agree with all of Facebook's contentions here, it ultimately concurs that the agency's complaint is legally insufficient and must therefore be dismissed."

A Facebook spokesperson said: "We are pleased that today's decisions recognise the defects in the government complaints filed against Facebook." An FTC spokesperson said the agency was "closely reviewing the opinion and assessing the best option forward."

A bright spot for the FTC in the opinion was the judge's saying that the agency was "on firmer ground in scrutinizing the acquisitions of Instagram and WhatsApp, as the court rejects Facebook's argument that the FTC lacks authority to seek injunctive relief against those purchases."

The FTC and a big group of states filed separate lawsuits last year that accused Facebook of breaking antitrust law to keep smaller competitors at bay by snapping up rivals, such as Instagram for $1 billion (roughly Rs. 7,430 crores) and WhatsApp for $19 billion (roughly Rs. 141,165 crores).

Judge finds flaws in market share claim

The federal government and states filed a total of five lawsuits against Facebook and Alphabet's Google last year following bipartisan outrage over their social media clout in the economy and the political sphere.

The judge said that the FTC did not adequately support its assertion that Facebook has more than 60 percent of the market. But Boasberg said the agency could potentially fix the issue in a refiling.

The judge also criticised portions of the FTC's case regarding its refusal to allow interoperability permissions with competing apps.

Republican Senator Josh Hawley criticised the court's decision on the FTC lawsuit as "deeply disappointing."

© Thomson Reuters 2021
 


We discuss the return of PUBG Mobile, sorry, Battlegrounds Mobile India on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Facebook, Instagram, WhatsApp, Google
Twitter Removes Distorted Map Displaying Jammu and Kashmir, Ladakh Outside India
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »