FTC monoploy case against Meta can go ahead, judge rules
US regulator given the green light to try to enforce sale of Instagram and WhatsApp
A US federal judge has given the go ahead to the Federal Trade Commission (FTC) to sue Meta on anti-trust grounds.
The FTC says that Facebook has unfairly stifled competition by buying up rivals, including WhatsApp and Instagram, effectively making itself social media monopoly. It wants Meta to divest itself of those assets to allow for more competition.
The judgement comes after a previous victory in the courts by Meta - then Facebook - when the same judge said the case filed by the FTC and 48 states lacked detail and was "legally insufficient". Facebook had also argued that FTC chair Lina Khan was biased against the company.
However, District of Columbia Judge James Boasberg, who threw out the first submission in June, said that the revised version is "far more robust and detailed than before".
"In stark contrast with its predecessor, this complaint provides reinforcing, specific allegations that all point toward the same conclusion: Facebook has maintained a dominant market share during the relevant time period," he added.
Judge Boasberg also dismissed Meta's complaints about Lina Khan, saying the FTC chair has "no axe to grind". Nevertheless, he said the regulator faces a "tall task" in proving its monopoly allegations.
Meta argues that the FTC lacks evidence to back up its allegations.
"Today's decision narrows the scope of the FTC's case by rejecting claims about our platform policies," spokesperson Chris Sgro said.
"We're confident the evidence will reveal the fundamental weakness of the claims. Our investments in Instagram and WhatsApp transformed them into what they are today. They have been good for competition, and good for the people and businesses that choose to use our products."