A U.S. Federal Judge has authorized the Federal Trade Commission (FTC) to sue Meta for abuse of dominant position in the social media industry, in a decision delivered on January 11. A blow for the parent company of Facebook which hoped for the final rejection of the case.
“Is the second time the right one?” “
The competition authority’s complaint has finally been validated by the US federal justice. The complaint, initially filed in December, Judge James Boasberg dismissed in June, considering it insufficiently substantiated. The FTC was quick to review its copy by filing a new complaint in August.
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In his fifty-page decision, James Boasberg considered the second time to be the right one. While recognizing that ” The theory at the center of this complaint is essentially the same “, He notes that” the facts put forward [par la FTC] are much more robust and detailed than the first time “.
For the FTC, Meta engaged in anti-competitive behavior by buying Instagram for $ 1 billion in 2012 and WhatsApp for $ 19 billion in 2014. The authority estimates that Meta has ” illegally bought out or buried new innovators when their popularity became an existential threat “. Among the arguments put forward is also data from the firm Comscore, according to which 70% of Americans on social networks use Meta platforms.
Chris Sgro, spokesperson for Meta, unsurprisingly strongly rebuffed the FTC’s accusations in the Wall Street Journal, ” We are confident that the evidence will reveal the fundamental weakness of these claims. Our investments in Instagram and WhatsApp have turned them into what they are today. They have been good for the competition, and good for the people and businesses who choose to use our products. “.
James Boasberg also rejected accusations of bias against Lina Khan, the president of the FTC. Known for his antitrust positions before he took office, Meta, like Amazon, tried to sideline him from the agency’s decisions on these matters. According to the judge “ Even though Madame Khan has expressed views on Facebook’s monopoly power, these positions do not mean that she is acting this way out of personal animosity or a conflict of interest. “.
There is still a long way to go to convict Meta
The move is a big step forward for the FTC in its fight against Meta’s monopoly practices. Little consolation for Facebook, James Boasberg rejected the accusation that the company would block access to its platforms to third-party application developers. A bipartisan law is being discussed in the Senate on this issue.
It is still too early for the FTC to claim victory. Before securing the separation of Facebook, WhatsApp and Instagram, one of the main objectives of the agency, there is still a long way to go, warns James Boasberg. He writes that he is ” impossible to say if the FTC will be able to prove its claims at trial “. Years of proceedings are still needed before the prosecution is successful.