Facebook Accused of Being a Monopoly
Reading Time: 2 minutes

Facebook accused of being a monopoly by the Federal Trade Commission. The social giant is being accused of using monopolistic tactics to crush competition illegally. This came after a federal judge threw out the agency’s original case two months ago.

While the arguments remained the same as the previous suit, now the suit includes more facts and analysis. According to the agency, these will better support the government’s allegations.

According to The New York Times, the agency refiled the case after the judge overseeing the case back in June said the government did not provide enough evidence that Facebook was a monopoly in social networking. The judge’s decision came as a setback for the regulators trying to rein in the social media giant. Ironically the judge made a similar decision in a case against a company bought by more than 40 states.

Ms. Lina Khan, the FTC chair, is a new breed of thinkers along with many other administration officials and lawmakers, who argue that the government needs to take far more aggressive action to stem the power of technology giants like Facebook, Google, Amazon, and Apple. The power of technology companies is also being challenged by President Biden who has appointed multiple regulators with similar aims and lawmakers proposed updates to antitrust laws.

Slamming the first version of the suit, Judge Boasberg wrote, “No one who hears the title of the 2010 film ‘The Social Network’ wonders which company it is about. Yet, whatever it may mean to the public, ‘monopoly power’ is a term of art under federal law with a precise economic meaning.”
The Judge instructed the F.T.C. to back up claims that Facebook controlled 60 percent of the market for “personal social networking” and that it blocked competition.

This brings up Ms. Khan with an option to drop the case entirely or to expand it with even broader accusations. She chose the middle ground, to resubmit the suit with greater detail and a more sweeping narrative of the company and what the agency says is a pattern of anticompetitive behavior since Mark Zuckerberg co-founded it at Harvard in 2004.

Facebook on the other hand has filed a petition of Ms. Khan, it said her work on a House investigation into platform monopolies shows a bias against the company. Ms. Khan is not expected to recuse herself.

Related Articles:

How Hackers Are Tricking Apple CSAM Scanner
Zedge – Phone Software Company Acquires Emojipedia
Facebook Blocks Taliban WhatsApp account