Judge dismisses FTC case against Facebook. But the victory could motivate the social giant’s foes in Congress
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Facebook vs. many government lawyers… The FTC and 46 states sued Facebook back in December, arguing it unfairly maintained its monopoly status (in social media, DMs, and likes/comments) by crushing competition and buying rivals. The government asked that Facebook unwind Instagram and WhatsApp, separating them as different companies.
- Facebook’s lawyers filed a motion to dismiss, fearing an expensive legal fight and a heartbreaking goodbye to Insta.
- Yesterday, the judge granted the dismissal.
But, the judge critiqued the government’s complaint, not the case... The judge said the government’s complaint failed to identify an actual violation of antitrust law. “Legally insufficient” were his exact words about the evidence. The judge also gave the government a chance to amend its complaint within 30 days.
- That didn’t temper Wall Street joy... FB surged 4% to a record high. Add up all of FB’s stock today, and it’s worth more than $1T. The $1T club includes Apple, Microsoft, Saudi Aramco, Amazon, Google, and now – Facebook.
FB won the battle, but there could still be a war... Last week, a House Committee advanced six bills that would crackdown on what many in Congress have called unfair play by tech giants. Yesterday, a federal judge said that existing antitrust law — which was written 100 years ago — doesn’t paint Facebook as doing anything wrong. That gives FB some short-term breathing room, but could motivate Congress to change antitrust law. 21st century tech requires 21st century antitrust laws. New talking points could be coming.