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The US Federal Trade Commission has renewed its antitrust complaint against Facebook, redoubled accusing the social media group of maintaining monopoly power and using “buy or bury” strategies to suppress competitors.
The original lawsuit, originally filed in December, accused Facebook of “several years of anti-competitive behavior” because it tried to force Facebook to dismantle its Instagram and WhatsApp bn, which it acquired for US$1 billion and US$19 in 2012 and 2014, respectively. .
However, a federal judge dismissed the complaint in June, which dealt a major blow to the agency, saying it “failed to present enough facts to reasonably determine” that Facebook has a monopoly on the social network market.
The renewed lawsuit contains arguments similar to the original case, but with more details, such as the claim that the company pursues an “anti-competitive acquisition strategy.”
It also stated that the social network has developed an “anti-competitive conditional trading policy” aimed at crushing competitors by depriving competitors of access to its platform. The new complaint has a total of 80 pages, which is an increase from the original 53 pages.
“Facebook lacks business acumen and technical talents to survive the transition to mobile devices. The Acting Director of the FTC Competition Bureau Holly Vedova (Holly Vedova) said that after failing to compete with new innovators, When their popularity became an existential threat, Facebook bought or buried them illegally.
Vedova added: “This behavior is as anti-competitive as Facebook’s bribery of emerging app competitors not to compete.
This case is one of the first major tests for the new FTC chairman and well-known large-scale technology critic Lina Khan. Because of her previous criticism of the company in academia, Facebook has tried to exclude it from this case.
In order to prove Facebook’s dominance in the market, the US Federal Trade Commission stated in a document that the number of deleted Facebook and Instagram users is “tens of millions” higher than the monthly number of social media application Snapchat it said. The next biggest.
“No other personal social network provider in the United States remotely approaches the scale of Facebook,” it said.
It also believes that Facebook’s dominance, combined with its large, interconnected user base, creates “high barriers to entry” for competitors. In particular, it cited Facebook’s internal documents, saying that it is difficult for competitors with similar social products to challenge “existing companies that dominate in scale.”
The company said in a tweet that it is reviewing the resubmitted complaint, but “will have more to say soon.”