WASHINGTON – Facebook Inc.
FB 0.07%
Wednesday asked a federal judge to dismiss antitrust cases from the Federal Trade Commission and the state attorney general, arguing that government enforcers have no valid basis on which to argue that the social media giant is stifling competition.
The FTC “completely ignores the realities of the dynamic, intensely competitive high-tech industry in which Facebook operates,” the company said, seeking to dismiss the committee’s case. In a second motion, Facebook argued that the states’ case “does not and cannot claim that their citizens have paid higher prices, that output has decreased, or that an objective measure of quality has declined as a result of Facebook’s contested actions. . “
The company’s filings with the U.S. District Court in Washington mark the first legal salvo since the FTC and 46 states sued Facebook in December over allegations that the company has unlawfully maintained its monopoly by freezing and buying up potential competitors.
The FTC and the states each claim that Facebook chose to buy companies rather than compete with them, with much of their business centered on the company’s previous acquisitions of mobile messaging service WhatsApp and Instagram, its sharing platform. photos.
The FTC previously allowed Facebook to make those acquisitions, but says time has shown that the company has used the deals to anchor a monopoly position. The states argue that a lack of Facebook competitors has caused consumer harm, including by weakening privacy protections.
Facebook will have to meet a high legal standard to convince a federal judge to throw the cases out for trial. To break a motion of dismissal, the company must demonstrate that the plaintiffs’ actual allegations about the nature of the marketplace, even if accepted as true, do not constitute a valid legal claim.
The FTC and the states will respond to the motions in April.
New York State Attorney General Letitia James outlined a sweeping antitrust case against Facebook by the Federal Trade Commission and a bipartisan group of 46 attorneys general focused on the company’s tactics against competitors. Photo: Saul Loeb / AFP via Getty Images (video dated 12/9/20
Facebook noted in its papers that the FTC lawsuit was filed 3-2 and was filed at a time when the company faced unrelenting criticism “for matters unrelated to antitrust issues.”
The company said the committee has not defined a relevant market that Facebook allegedly dominates. Almost all of Facebook’s revenue comes from advertising, which is a relentlessly competitive market, the company said.
Facebook also argued that the FTC has failed to demonstrate that the company has a monopoly position because the government cannot demonstrate that the company has increased prices or limited production, as “Facebook’s products are offered for free and in unlimited quantities “.
The company repeatedly stressed that the committee had previously authorized the acquisition of Instagram and WhatsApp in 2012 and 2014, respectively. The FTC reviewed those deals at the time and decided not to challenge them.
The FTC and the states argue that those acquisitions served to eliminate emerging, independent technology companies whose popularity could have enabled them to become major Facebook rivals.
If the committee’s case succeeds, it could result in Facebook having to rescind those deals.
Not all federal and state business focused on Facebook’s acquisitions. Antitrust enforcers also alleged that Facebook engaged in other anti-competitive behavior, including closing access to its platform to third-party developers.
In response, Facebook said in its legal documents that the Supreme Court precedent has made it clear that it is under no obligation to allow other companies access to its platform.
In an attack on the state’s case, the company argued that the attorneys general did not have the proper legal standing to file a case on behalf of their citizens, and claimed that the states had waited too long for Press charges.
Write to Brent Kendall at [email protected]
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