Meta Faces Trial Over Allegations of Anti-Competitive Practices in Social Media Acquisitions
- 2024-11-14
- 0
The ongoing legal battle surrounding Meta Platforms has taken a significant turn as the company is set to face a trial following a lawsuit from the Federal Trade Commission. This lawsuit aims to investigate claims that Meta, previously known as Facebook, engaged in anti-competitive practices when it acquired Instagram and WhatsApp. A Washington judge has ruled that the case will proceed, highlighting serious allegations regarding the company’s tactics to suppress potential rivals in the social media space.
On Wednesday, Judge James Boasberg largely dismissed Meta's request to terminate the lawsuit initiated in 2020. This lawsuit, originating during the previous administration, alleges that Meta's acquisitions were part of a deliberate strategy to maintain its dominant position in the social media ecosystem.
The FTC's position suggests that Meta overvalued Instagram in 2012 and WhatsApp in 2014 with the intention of eliminating emerging threats rather than competing fairly. While Judge Boasberg allowed these assertions to continue, he did reject the FTC’s argument that Meta enhanced its market dominance by limiting third-party app developers' access unless they agreed to avoid competition with its primary services.
A representative from Meta conveyed assurance that the evidence presented during the trial will demonstrate that the acquisitions of both platforms have ultimately benefitted competition and consumers alike. Meanwhile, the FTC spokesperson emphasized that this legal action showcases a bipartisan commitment to limiting Meta's monopoly and fostering a healthier competition landscape.
According to Judge Boasberg's ruling, Meta will be restricted from claiming that its acquisition of WhatsApp improved competition specifically against tech giants like Apple and Google. The judge indicated he would provide a comprehensive order in due course once both parties have redacted any sensitive information.
At this moment, there has not been a designated trial date established been established for this case. Meta's legal team has contested the foundation of the lawsuit, arguing that it relies on a limited perspective of social media markets and neglects the competition presented by platforms such as TikTok, YouTube, X, and LinkedIn.
This lawsuit is part of a broader array of significant antitrust cases involving major technology companies, including pending litigation against Amazon and Apple. Alphabet's Google is also facing multiple lawsuits, with a recent ruling affirming that it has engaged in practices that unjustly hinder competition in the online search engine space.
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