US Department of Justice suing Facebook
US federal trade commission and more than 45 state prosecutors have sued Facebook saying the company is taking illegal actions to buy up rivals and stifle competition. The lawsuits come as US regulators are investigating big tech companies´ power. Department of Justice in October sued Google accusing the company of violating US competition laws to keep its dominance on internet search and online advertising.
Officials are asking the court to consider breaking up Facebook that owns also photo sharing app Instagram and messaging service WhatsApp.
Facebook said the deals under scrutiny were approved by regulators years ago.
“The government now wants a do-over, sending a chilling warning to American business that no sale is ever final,” Facebook general counsel Jennifer Newstead said. She said the company had invested millions to make Instagram and WhatsApp successful and would defend itself “vigorously”.
“Antitrust laws exist to protect consumers and promote innovation, not to punish successful businesses,” Facebook said, describing the government’s arguments as “revisionist history”. The company has argued in the past that the market for social media remained competitive, pointing to the growth of TikTok and Parler as examples.
The lawsuits focus on Facebook’s 2012 acquisition of Instagram, 2014 purchase of WhatsApp and rules governing outside software developers.
The legal filings cite internal messages from Facebook boss Mark Zuckerberg, such as one 2008 email that said it was “better to buy than compete”.
“For nearly a decade, Facebook has used its dominance and monopoly power to crush smaller rivals and snuff out competition, all at the expense of everyday users,” said New York Attorney General Letitia James. “No company should have this much unchecked power over our personal interaction and social interactions. That’s why we are taking action today.”
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