Facebook has asked a court to dismiss state and federal antitrust lawsuits that accuse it of abusing its market power in social networking to crush smaller competitors.
The social media giant said Wednesday that the complaints ‘do not credibly claim’ that its conduct harmed either consumers or market competition.
The antitrust suits, filed in December by the Federal Trade Commission and 48 states, are seeking remedies that could include a forced spinoff of the social network’s popular Instagram and WhatsApp services.
The social media giant said Wednesday that the complaints from the states and FTC ‘do not credibly claim’ that its conduct harmed either consumers or market competition
The states and FTC have until April 7 to respond to the dismissal from Facebook
‘As we said when the FTC and the state attorneys general announced these lawsuits, people around the world use our products not because they have to, but because we make their lives better,’ Facebook said in a statement.
In lawsuits filed in December, the FTC and states asked the court to force the social media giant to sell two prized assets, its messaging app WhatsApp and photo-sharing app Instagram. U.S. District Judge James Boasberg in the District of Columbia will hear the cases.
In their suits, the FTC said that Facebook was engaging in a ‘systematic strategy.’
New York Attorney General Letitia James, in announcing the states complaint, echoed this sentiment, saying that Facebook ‘used its monopoly power to crush smaller rivals and snuff out competition, all at the expense of everyday users.’
In lawsuits filed in December, the FTC and states asked the court to force the social media giant to sell Instagram and WhatsApp. In their suits, the FTC said that Facebook was engaging in a ‘systematic strategy’
New York Attorney General Letitia James, in announcing the states complaint, echoed this sentiment, saying that Facebook ‘used its monopoly power to crush smaller rivals and snuff out competition, all at the expense of everyday users’
The FTC and states accused Facebook of breaking antitrust law to keep smaller competitors at bay and snapping up social media rivals, like Instagram for $1 billion in 2012 and WhatsApp in 2014 for $19 billion.
All told, the federal government and states filed five lawsuits against Facebook and Alphabet’s Google last year following bipartisan outrage over use and misuse of social media clout both in the economy and in the political sphere.
The FTC and the New York Attorney General’s office did not immediately respond to messages for comment.
In its response to the FTC lawsuit, Facebook argued that the government failed to show that Facebook had a monopoly in a clearly defined market or that it had hurt consumers.
‘By a one-vote margin, in the fraught environment of relentless criticism of Facebook for matters entirely unrelated to antitrust concerns, the agency decided to bring a case against Facebook,’ Facebook said in its response to the FTC complaint.
The introduction to Facebook’s dismissal
‘None of the harms typically alleged in antitrust actions is alleged here,’ it said.
The company also dismisses emails cited in the FTC lawsuit written by Facebook CEO Mark Zuckerberg and other executives expressing worry about the competitive threat posed by Instagram and WhatsApp.
‘Lacking facts to establish either unlawful conduct or harm to consumers, the FTC attempts to bolster its claims with a grab-bag of selectively quoted internal emails and messages from Facebook executives, which are offered to show that Facebook was concerned about competitive threats from Instagram and WhatsApp – but also many, many other firms,’ Facebook said in its response.
Separately, in the lawsuit brought by dozens of states and territories, Facebook argued that the state case should be dismissed because the states failed to show that they were harmed by Facebook and because they waited more than four years.
Facebook dismissed emails cited in the FTC lawsuit written by Facebook CEO Mark Zuckerberg and other executives expressing worry about the competitive threat posed by Instagram and WhatsApp
The states and FTC have until April 7 to respond.
Big Tech companies are facing growing opposition from lawmakers on both sides of the aisle on the power they have amassed over the past decade. There´s little likelihood the pressure will ease up. President Joe Biden has said that a breakup of tech giants should be seriously considered.
Lawmakers and consumer advocates have accused Facebook of anticompetitive behavior, most starkly in buying up aspiring smaller rivals like Instagram and WhatsApp and by copying competitors.
Critics say such tactics squash competition and could limit viable alternatives for consumers looking, for instance, for comparable services that do less tracking for targeted advertising. Businesses, including mom and pop shops, might have to pay more for ads if they have fewer choices to reach consumers online.
The lawsuits could take years to resolve.