“No other personal social networking provider in the United States remotely approaches Facebook’s scale,” the agency said in the complaint.
The refiling is the FTC’s attempt to course correct after it suffered a stunning setback earlier this summer, when a federal judge threw out its suit against the tech giant, along with a similar case from state attorneys general. The Facebook case is the most high-profile challenge that the agency has brought against a tech company in decades, and it’s widely being watched as a bellwether of the growing movement in Washington to curb concentration in the tech industry.
“Facebook lacked the business acumen and technical talent to survive the transition to mobile. After failing to compete with new innovators, Facebook illegally bought or buried them when their popularity became an existential threat,” said Holly Vedova, Acting Director of the FTC’s Bureau of Competition.
Facebook did not immediately respond to request for comment, but the company said on Twitter that it was reviewing the case.
The filing is also the most high-profile action to date under the agency’s new Democratic majority, helmed by Big Tech critic Lina Khan. Khan inherited the Facebook case from the previous Trump-appointed chair, but her ability to see it to a successful conclusion could define her legacy as an antitrust enforcer.
The new suit seeks to clearly explain why it believes Facebook has monopoly power, following the judge’s assertion that the initial complaint did not fully define the company’s market share. The filing argues that Facebook’s platform, which allows people to maintain relationships with family and friends online, is singular and a wide range of companies that aim to distribute content to strangers should not be considered competitors.
Notably, the FTC argues that TikTok, which according to one survey overtook Facebook in number of downloads, should be excluded from Facebook’s market.
The lawsuit was refiled on a party-line vote, with the commission’s two Republicans voting against the case. They both also voted against the initial case under former Trump-appointed FTC chairman Joseph Simons.
This is just the latest development in a saga that began in December, when the FTC brought a suit with bipartisan support challenging the company’s pattern of buying up or crushing smaller rivals. The agency sought to force the company to divest from WhatsApp and Instagram, as well as to prevent Facebook from imposing anticompetitive conditions on software developers.
Facebook vowed to vigorously defend itself from the agency’s allegations, and subsequently brought a motion to dismiss the agency’s suit. The company argued that the federal government’s suit failed to clearly support its claim that Facebook has monopoly power.
U.S. District Judge James E. Boasberg sided with the company, underscoring the strength of the legal resources of the $1 trillion tech behemoth. However he allowed the agency to refile its complaint with more details to shore up its case.
The decision underscored the challenges ahead of the FTC, especially in a court system that has for decades held a relatively narrow view of antitrust harms. It also sparked calls from lawmakers from both parties to pass legislation to ensure competition challenges could more easily be brought against tech giants.
Khan is under immense political pressure to score a victory in the case, as Facebook’s reputation in Washington has dramatically deteriorated in recent years following privacy and other scandals.
Sen. Amy Klobuchar, the chair of the House Judiciary antitrust subcommittee, praised the agency for advancing its case. “Facebook’s long history of anticompetitive behavior is no secret,” the Minnesota Democrat said in a statement. “I’m glad the FTC is taking renewed action to stop Facebook’s anticompetitive behavior and I encourage them to continue to consider all available options under the law to hold Facebook accountable.”
Facebook has sought the recusal of Khan from the case, given her criticism of the company and other tech industry giants in academic writing and previous jobs. However the FTC said in a blog post on Thursday that it had dismissed the petition.
“The FTC’s Office of General Counsel carefully reviewed Facebook’s petition to recuse Chair Lina M. Khan,” the agency said in a statement. “As the case will be prosecuted before a federal judge, the appropriate constitutional due process protections will be provided to the company.”
This story is developing, please check back for updates.
https://ift.tt/2W1nv2Y
Case
No comments:
Post a Comment