US district court dismisses FTC's antitrust complaint against Facebook, saying its definition of market dominance was insufficient, but will let FTC refile it

- A federal court on Monday dismissed the Federal Trade Commission's antitrust complaint against Facebook.

CNBC 2021-06-29 Salvador Rodriguez

Discussion

Vox Shirin Ghaffary on x
The FTC's antitrust complaint against Facebook has been dismissed — for now
@leah_nylen @leah_nylen on x
Breaking: The district court just dismissed the FTC's antitrust suit against Facebook. More TK
@cnbcnow @cnbcnow on x
BREAKING: Judge dismisses FTC antitrust complaint against Facebook; $FB shares surge 3.4%, surpassing $1 trillion in market value for the first time https://www.cnbc.com/... https://twitter.com/...
@hawleymo Josh Hawley on x
This is deeply disappointing from the court, which acknowledged @Facebook massive market power but essentially shrugged its shoulders. Bad result for the American people https://twitter.com/...
@ceciliakang @ceciliakang on x
We are updating as we read complaints and talk to experts. This is obviously huge setback for government effort to reign in Big Tech and huge win for Facebook. Its stock is soaring https://twitter.com/...
@repkenbuck Rep. Ken Buck on x
I'm very interested in reforming Section 230 to take away Big Tech's liability shield. However, Republicans must also engage in antitrust reform to break up Big Tech's monopoly power. These reforms are not exclusive. We can do both.
@willoremus Will Oremus on x
Seems plausible the FTC will do exactly that—file a new complaint that makes a stronger, more detailed factual case that Facebook has a dominant market share in social networking.
@sarahfrier Sarah Frier on x
statement from @SenBlumenthal indicates Congress taking the FTC Facebook complaint dismissal as a rallying cry to update antitrust laws https://twitter.com/...
@amyklobuchar Amy Klobuchar on x
The FTC should do everything it can to pursue its case against Facebook. But the ruling shows why our antitrust laws need to be updated after years of bad precedent. We can't meet the challenges of the modern digital economy with pared down agencies & limited legal tools.
@b_fung Brian Fung on x
Shares of Facebook right now: https://twitter.com/...
@caseynewton Casey Newton on x
It's the foundation of the case, and the FTC basically just tried to wave its hands through the whole thing. Anyway better luck next filing I guess
@reckless Nilay Patel on x
This opinion dismissing the FTC attempt to break up Facebook is written like it's mean to be told around a campfire https://twitter.com/...
@levie Aaron Levie on x
I remember using TheFacebook for the first time when it came to college and thinking wow this website could be worth millions some day. Today it hit $1T.
@benedictevans Benedict Evans on x
A very common pattern in tech regulation in the last year - The EU produces rules that are far too complicated and the US produces rules that are far too simple, and collapse in the face of reality.
@sarahfrier Sarah Frier on x
After this news, Facebook became the fastest-ever company to reach $1 TRILLION in market value, hitting the milestone in just 17 years https://www.bloomberg.com/...
@willoremus Will Oremus on x
A district court judge just dismissed the FTC's antitrust suit against Facebook, saying it failed to establish that FB has a monopoly on social networking. But it would be a mistake to read this as saying the antitrust case against Facebook is dead. https://t.co/0HZ7e6fdIC
@fawfulfan Matthew Chapman on x
I expected this outcome TBH. Our current laws are just totally inadequate to deal with the kind of anticompetitive practices tech companies engage in. We need new action from Congress. https://twitter.com/...
@notpretzel @notpretzel on x
FTC: Facebook is a monopoly The court: how FTC: fuck you got us https://twitter.com/...
@asherschechter Asher Schechter on x
The courts are the single biggest impediment right now to antitrust reform https://twitter.com/...
@dealbook @dealbook on x
The complaint the Federal Trade Commission filed in December was insufficient and failed to provide enough facts to back its claims that Facebook had a monopoly over personal social networking, a judge said. https://www.nytimes.com/...
@brendanbordelon Brendan Bordelon on x
Last year a lot of folks argued that Trump's FTC rushed its complaint against Facebook, perhaps as an election-year play. With the district court throwing out that complaint today, it sure looks like they had a point... https://storage.courtlistener.com/ ... https://twitter.com/.…
@mikeisaac Rat King on x
there's a line in here that homes in on the FTC being on firmer ground scrutinizing Facebook's biggest acquisitions — Instagram and WhatsApp — rather than focusing on its platform (lack of) interoperability argument https://storage.courtlistener.com/ ...
@adamnash Adam Nash on x
Rare moments of sanity. 💯 https://www.nytimes.com/...
@brkend Brent Kendall on x
Hard to overstate the blow Facebook landed here. These were long-anticipated, sweeping, historical lawsuits from the FTC and 46 states, at a time when antitrust is a hot topic. And a moderate judge tossed them at the outset, without oral argument. https://www.wsj.com/...
@colorofchange @colorofchange on x
This ruling disregards the fact that @Facebook can decide the fate of smaller platforms and businesses. When corporations are too big to face real consequences for harming Black communities, our government has a responsibility to rein in their power. https://www.politico.com/...
@harrylitman Harry Litman on x
The judge here, Jed Boasberg, is as thoughtful, careful, fair, and respected as they come. A serious brushback for FTC. Court says FTC hasn't provided evidence Facebook is a monopoly, dismisses lawsuit https://www.washingtonpost.com/ ...
@edmundlee Edmund Lee on x
and go after its acquisition of @instagram and @WhatsApp ... defining monopoly may be impossible, if it the courts still abide by Bork interpretation of the antitrust act But the judge does offer a good outline of *how* the FTC can amend its complaint: https://storage.courtlisten…
@marklemley Mark Lemley on x
Judge throws out FTC + states antitrust case against Facebook on the grounds that there's no proof Facebook has market power and that closing off APIs isn't an antitrust violation. It's much harder to survive a motion to dismiss in antitrust than elsewhere https://storage.courtli…
@profcarroll David Carroll on x
'@linakhanFTC⁩'s first major task as chair will be to rewrite the Facebook lawsuit to address the judge's criticisms.' https://www.nytimes.com/...
@karaswisher Kara Swisher on x
Like ⁦@profgalloway⁩ said on pivot last week, it's the courts that will drag down tech regulation via @NYTimes https://www.nytimes.com/...
@senwarren Elizabeth Warren on x
Anybody on the internet knows that Facebook has monopoly power. They control 85% of social network traffic, bulldoze competition, and undermine our democracy. We need stronger antitrust laws to #BreakUpBigTech and finally unwind mergers like Facebook, WhatsApp, and Instagram. htt…
@caseynewton Casey Newton on x
Interestingly, the court is willing to accept that a market for something called “personal social networking” exists. But it found that the FTC basically didn't even try to back up its claim that Facebook owns 60 percent of it.
@producthunt @producthunt on x
A federal court found that the FTC didn't provide enough data proving Facebook has the market power for the “Personal Social Networking Services” space. The court left open the case for a possibility of an amended complaint. https://www.cnbc.com/...
@mattrosoff Matt Rosoff on x
Still going through the FTC-Facebook ruling, but looks like the judge is spanking the FTC for making a sloppy/lazy argument about Facebook's power. “It is almost as if the agency expects the Court to simply nod to the conventional wisdom that Facebook is a monopolist.”
@robbysoave Robby Soave on x
Facebook is not a monopoly, so this isn't actually “stunning” https://www.nytimes.com/...
@senblumenthal Richard Blumenthal on x
Though I believe this opinion was wrongly decided, it certainly shows just how broken our antitrust laws are. The court rejected the FTC's case because it wasn't clear under our current antitrust laws that Facebook has a monopoly in online networking—a flabbergasting assertion. h…
@sruhle Stephanie Ruhle on x
Well...when no laws are put in place to curb bad practices, then they aren't unlawful. They are a just awful & lawful. If u don't like this outcome, contact your congressperson https://twitter.com/...
@austen @austen on x
Look like judge threw out FTC monopoly cases against Facebook. Seems right, legally. I have no idea how you would prove that Facebook has monopoly power in “social networking services” amongst 10,000 competitors.
@matthewstoller Matt Stoller on x
Facebook just hit $1T market value. https://www.bloomberg.com/... https://twitter.com/...
@econ_marshall @econ_marshall on x
Facebook keeps screwing over its customers and they keep not leaving. A normal person concludes that therefore FB is a monopoly, but FB's legal team and lobbyist-economists treat that as evidence they're not being screwed over. You can see where the problem lies in antitrust.
@repmondaire Rep. Mondaire Jones on x
Let's be clear - @Facebook is a monopoly that's abused its power time and time again. It's more important than ever that Congress pass the laws we need to break it up. https://twitter.com/...
@bobbyallyn Bobby Allyn on x
A big win for Facebook in part because our antitrust laws are 100+ years old and all relevant caselaw created parameters that can't be easily be applied to how modern tech companies operate and grow. https://twitter.com/...
@mdudas Mike Dudas on x
gonna need a facebook poll to fact check this ruling https://www.nytimes.com/...
@gabrielmalor Gabriel Malor on x
Fed. judge dismisses the FTC's antitrust lawsuit against Facebook. Held: FTC failed to plead enough to plausibly establish that Facebook has monopoly power. However, dismissal is without prejudice. FTC can amend the complaint. https://storage.courtlistener.com/ ... https://twitte…
@ivanthek @ivanthek on x
This doesn't look like a victory for Facebook—just a reprieve. (via @leah_nylen) https://storage.courtlistener.com/ ... https://twitter.com/...
@ajitpai Ajit Pai on x
Court dismisses w/o prejudice FTC's @Facebook suit; agency's “inability to offer any indication of the metric(s) or method(s) it used to calculate Facebook's market share renders its vague ‘60%-plus’ assertion too speculative and conclusory to go forward.” https://storage.courtli…
@alisonfrankel Alison Frankel on x
Facebook wins dismissal of FTC, state antitrust suits. Judge James Boasberg in DC federal court said FTC failed to allege Facebook's monopoly power in the market for “personal social networking services.” FTC and states can amend complaints. Here's ruling: https://fingfx.thomsonr…
@mikeelgan Mike Elgan on x
Market value of the moment: “past $1 trillion” https://twitter.com/...
@matthewstoller Matt Stoller on x
Basically the judge concedes Mark Zuckerberg said 'let's do crimes' but because judges now read antitrust law to require super weird expensive fights over market definitions, the case was dismissed. It can be refiled. https://twitter.com/...
@kantrowitz Alex Kantrowitz on x
This probably strengthens the argument for new anti-trust laws and gives Lina Khan's FTC a chance for a do-over. https://twitter.com/...
@caseynewton Casey Newton on x
FTC can file an amended complaint, though, and I expect they will. Case is not over.
@caseynewton Casey Newton on x
I would also like to note that the court's language is at time ... bizarre https://twitter.com/...
@sarahfrier Sarah Frier on x
WOW — Judge dismisses FTC and states' antitrust case against Facebook. Says they will have to refile it.
@repkenbuck Rep. Ken Buck on x
Today's development in the FTC's case against Facebook shows that antitrust reform is urgently needed. Congress needs to provide additional tools and resources to our antitrust enforcers to go after Big Tech companies engaging in anticompetitive conduct. https://twitter.com/...
@anothercohen Alex Cohen on x
Facebook building a $1T company with a practically unusable UI/UX is proof that redesigning your entire app is not the solution to your startup reaching product-market fit
@stacyfmitchell Stacy Mitchell on x
This is exactly why Congress must pass the #BigTechBills. The courts have a deeply ingrained affinity for concentrated private power and a reflexive impulse to dismiss challenges to it. And it's not just on the right. This judge is an Obama appointee. https://twitter.com/...
@sarafischer Sara Fischer on x
BREAKING: @Facebook's market value surpasses $1 trillion for the first time — The irony: The milestone was achieved following a federal judge's dismissal of an antitrust complaint from the FTC, which sent shares up. https://www.axios.com/...
@calebwatney Caleb Watney on x
Extremely funny to me that the event which tips Facebook to being a trillion-dollar company for the first time is a court ruling saying they aren't viewed as a monopoly https://twitter.com/...
@b_fung Brian Fung on x
The dismissal of the FTC's Facebook complaint comes as Facebook's market cap hit $1 trillion for the first time: https://www.cnn.com/... Mark Zuckerberg must be feeling pretty good right about now.
@quantian1 Quantian on x
Monopolist's shares rise on dismissal of antitrust lawsuit, Axios reporters baffled as to why. https://twitter.com/...
@damccormick13 Dan McCormick on x
Today Facebook became the youngest company ever to hit a trillion dollar market cap. 1. Facebook (17 yrs) 2. Google (21 yrs) 3. Amazon (24 yrs) 4. Apple (42 yrs) 5. Microsoft (44 yrs) s/o Zuck & The Boys for creating the greatest money printing machine the world has ever known
@as_a_worker Yung📉walken on x
what can account for such a valuation on an advertising platform except a dearth of arenas for productive investment in value creation? (for reference, the value of ALL global steel production last year was $290 billion!)
@carnage4life Dare Obasanjo on x
10 years ago Google planned to use their market dominance to squash Facebook with the introduction of Google+. Today $FB at all time high after crossing $1 trillion in market cap. The race between startups & incumbents is always speed vs distribution and startups have the edge. h…
@richlightshed Rich Greenfield on x
Look at how the gap is widening between tech platforms and everyone else in the broader media space With $FB now one of five over $1 trillion market cap — Facebook more than 3x $DIS https://twitter.com/... https://twitter.com/...
@thestefansmith Stefan Smith on x
All it cost was American democracy. https://twitter.com/...
@econ_marshall @econ_marshall on x
Very hard to reconcile a $1 trillion market cap with the absence of monopoly power. https://twitter.com/...
@levynews Ari Levy on x
$1 million isn't cool. You know what's cool? https://www.cnbc.com/...
@jonerlichman Jon Erlichman on x
Time to reach $1 trillion market cap: Facebook: 17 years Google: 21 years Amazon: 24 years Apple: 42 years Microsoft: 44 years
@sachabaroncohen Sacha Baron Cohen on x
In college, Mark Zuckerberg built a website to rank women on their looks. Today, he makes $ from Facebook groups where men plot violence against women. #StopHateForProfit https://twitter.com/...
@leah_nylen @leah_nylen on x
TL;DR version: The judge finds the FTC didn't offer enough details to show that Facebook has a monopoly for social networking services.
@b_fung Brian Fung on x
Just in: A federal judge has dismissed the FTC's antitrust complaint against Facebook, saying it was worded too vaguely. The judge is giving the FTC another chance, though, if it files an amended complaint. https://www.pacermonitor.com/ ... https://twitter.com/...
@aoifewhite101 Aoife White on x
“He gave the agency an opening to revive the complaint by fixing it and refiling in 30 days.” https://www.bloomberg.com/...
@caseynewton Casey Newton on x
The court finds that the FTC failed to prove its case that Facebook had a monopoly on “personal social networking.” Accuses them of extremely sloppy work attempting to define the market (accurately imo) https://storage.courtlistener.com/ ...
@eric_seufert Eric Seufert on x
This passage in the ruling on the FTC vs Facebook case is strident. The FTC's suit was filed last year, before Lina Khan joined the agency, but it's unclear how / if the strategy changes (or improves) with her as Chair. https://twitter.com/...
@megancgraham Meg Graham on x
$FB closed above $1T in market cap for the first time on Monday. Shares closed up 4.18% at $355.64 after a ruling that dismissed an antitrust complaint brought by the U.S. FTC and a coalition of state attorneys general. via @sal19 https://www.cnbc.com/...
@voxdotcom @voxdotcom on x
However, the FTC's case against Facebook isn't completely closed. The FTC can pursue other methods for limiting Big Tech's power. And some politicians have viewed today's rulings as a call for Congress to update old antitrust laws so they can apply to modern-day tech companies.
@jannwolfe Jan Wolfe on x
Nadler and Cicilline on FTC v. Facebook: “The decision underscores the dire need to modernize our antitrust laws...Facebook is a monopolist, and it has abused its monopoly power to buy or bury its competitive threats.” https://twitter.com/...
@brendanbordelon Brendan Bordelon on x
Even if the FTC refiles, this is going to have a big impact in the congressional debate on antitrust law. Lawmakers on the progressive left and populist right often argue existing law is insufficient to rein in Facebook and other tech giants. This is fuel for that argument.
@tonyromm Tony Romm on x
methinks the new Democratic-led FTC might not totally mind another crack at the apple here on Facebook. we'll see what this means for congressional efforts to rethink antitrust law
@benedictevans Benedict Evans on x
California tried to classify Uber drivers as employers, but accidentally banned all freelance work. The FTC calls Facebook a monopoly, but forgets a definition. Congress proposes a law that would stop Apple squeezing Spotify, but also ban every other app on the phone.
@benedictevans Benedict Evans on x
Judge to FTC: you can't just say ‘Facebook has a monopoly’ - you have to define that. There's no automatic right to API access, even from a monopolist. And you need to argue very hard to overturn an acquisition from 8 years ago. 🤷🏻‍♂ ️ https://storage.courtlistener.com/ ...

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US district court dismisses FTC's antitrust complaint against Facebook, saying its definition of market dominance was insufficient, but will let FTC refile it

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