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Meta Platforms:Regulatory Environment: Difference between revisions
Meta Platforms:Regulatory Environment (view source)
Revision as of 17:52, 22 July 2024
, 22 July 2024→Meta Case
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* Allegations: The FTC alleges that Meta has established a monopoly in the social media market by acquiring potential competitors Instagram (for $1 billion in 2012) and WhatsApp (for $19 billion in 2014). The FTC argues that these acquisitions were part of a systematic strategy to eliminate threats to Meta's monopoly power, depriving consumers of alternative social media platforms that could have fostered competition. | * Allegations: The FTC alleges that Meta has established a monopoly in the social media market by acquiring potential competitors Instagram (for $1 billion in 2012) and WhatsApp (for $19 billion in 2014). The FTC argues that these acquisitions were part of a systematic strategy to eliminate threats to Meta's monopoly power, depriving consumers of alternative social media platforms that could have fostered competition. | ||
* Market Definition: The FTC contends that Meta's actions have prevented competition and innovation in the social media space, leading to higher prices and reduced choices for consumers. However, the initial complaint was dismissed in June 2021 for failing to adequately define the relevant market. The FTC was allowed to refile the lawsuit with an amended complaint, which survived Meta's motion to dismiss in January 2022. | * Market Definition: The FTC contends that Meta's actions have prevented competition and innovation in the social media space, leading to higher prices and reduced choices for consumers. However, the initial complaint was dismissed in June 2021 for failing to adequately define the relevant market. The FTC was allowed to refile the lawsuit with an amended complaint, which survived Meta's motion to dismiss in January 2022. | ||
<blockquote>Meta faces a similar lawsuit by the FTC, after the same judge who dismissed the state suit allowed the FTC to re-file its complaint in August 2021. “There was no valid claim that Facebook was a monopolist — and that has not changed,” Meta responded, adding that the “FTC’s claims are an effort to rewrite antitrust laws and upend settled expectations of merger review, declaring to the business community that no sale is ever final.” In December, the FTC asked the judge to move the litigation forward; however, Meta’s lawyers responded that the case is “nowhere near trial.” “After delaying nearly a decade to challenge historical acquisitions that the agency reviewed in 2012 and 2014, the FTC has no basis to claim that this case is now urgent,” Meta’s lawyers responded.<ref>https://www.conference-board.org/pdfdownload.cfm?masterProductID=50036</ref></blockquote><u>Possible Laws Broken:</u> | |||
<u>Possible Laws Broken:</u> | |||
# '''Section 2 of the Sherman Act''': Prohibits monopolization or attempts to monopolize any part of interstate trade or commerce. | # '''Section 2 of the Sherman Act''': Prohibits monopolization or attempts to monopolize any part of interstate trade or commerce. | ||