The US government and 48 states and districts filed suit against Facebook in December 2020, accusing the company of abusing its market hold of the social network to crush smaller competitors.
A US federal court on Monday dismissed an antitrust lawsuit filed by a coalition of the Federal Trade Commission (FTC) and state attorneys general against Facebook over regulators’ efforts to rein in the giant tech giant. It’s a big blow. After this decision, Facebook’s shares rose more than 4 percent. The share price increase took Facebook’s market capitalization (market cap) to more than $1 trillion (about Rs 74,29,850 crore) for the first time.
Judge James Bosberg of the US District Court for the District of Columbia ruled on Monday that the evidence presented in the lawsuit was not sufficient to prove that Facebook has a monopoly on the market. This judgment dismisses the complaint but does not quash the case. The FTC can file a new complaint by July 29. Which means the FTC can file the complaint again.
“These allegations do not provide an estimated actual figure or extent of Facebook’s market share for any time period over the past 10 years and do not ultimately establish that Facebook has market share,” he said.
On this matter, a Facebook spokesperson said, “We are pleased that today’s decision recognizes the flaws in the government complaints filed against Facebook.” An FTC spokesperson said the agency is “closely reviewing the opinion and assessing the best course of action.”
A lawsuit was filed against Facebook in December 2020
Let us tell you that the US government and 48 states and districts filed suit against Facebook in December 2020, accusing the company of abusing its hold of the social network’s market to crush smaller competitors and to Instagram and WhatsApp. Steps to be taken for forced separation were requested.
The FTC alleged that Facebook was acting in a “systematic strategy” to eliminate competition in the market and began buying smaller and emerging rivals such as Instagram in 2012 and WhatsApp in 2014. . Bosberg also dismissed another complaint filed by the state’s attorney general.
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