US FTC Files New Antitrust Lawsuit Against Facebook

Dismissed in June Due to Lack of Evidence
Additional Evidence Presented This Time

▲Lina Khan, Chair of the U.S. Federal Trade Commission (FTC) [Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The Federal Trade Commission (FTC), one of the two major regulatory agencies in the United States, has refiled an antitrust lawsuit against Facebook, the world's largest social networking service (SNS) company.

According to the Wall Street Journal (WSJ) on the 19th (local time), the FTC announced in a statement that Chair Lina Khan is filing a lawsuit against Facebook again. The FTC, composed of five commissioners, decided to refile the lawsuit with a 3-2 vote in favor, including Chair Khan.

The FTC claimed, "Facebook relied on illegal practices to maintain its dominance."

Previously, in December 2020, the FTC, along with 26 state attorneys general, filed an antitrust lawsuit against Facebook demanding the divestiture and sale of businesses such as Instagram and WhatsApp. However, in June, the U.S. District Court for the District of Columbia dismissed the case, stating there was insufficient evidence that Facebook monopolized the SNS market.

The court found that there was not enough evidence to support the claim that Facebook exercised monopoly power. However, the court allowed the FTC to strengthen its case and refile the lawsuit, which the FTC has now done.

In refiling the lawsuit, the FTC stated that it presented additional evidence supporting the claim that Facebook is a monopoly. It also requested the invalidation of Facebook's acquisitions of WhatsApp and Instagram.

The FTC argued, "Facebook lacked the business acumen and technical talent to survive the transition to mobile and, after failing to compete with new innovators, illegally acquired them and buried them in the market."

Facebook responded by saying, "It is regrettable that the FTC continues to pursue meritless lawsuits," and denied the claims, stating, "The assertion that Facebook is a monopoly is baseless, and the acquisitions and platform operations have been conducted legally."

The WSJ pointed out, "Facebook is expected to take measures to dismiss this lawsuit as well, and if overcome, it could lead to years of legal battles with significant ripple effects on Facebook and the FTC's authority to regulate dominant companies."

This content was produced with the assistance of AI translation services.