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Judge grants FTC second chance to challenge Facebook on antitrust grounds

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Lina M. Khan, FTC nominee, testifies at a confirmation hearing of the Senate Committee on Commerce, Science and Transportation on Capitol Hill, Washington, DC, April 21st, 2021.

Graeme Jennings | AFP | Getty Images

Federal Trade Commission received a second opportunity to defend its allegations of illegal monopolization by a judge FacebookI reject the company’s offer. motion to dismissOn Tuesday, the new lawsuit filing was made.

U.S. District Court Judge James Boasberg granted Facebook’s earlier motion to dismiss over the summerHowever, he allowed the FTC to amend its complaint again and dismissed it. The FTC also dismissed another similar lawsuit brought to him by a coalition state attorneys general, but he did not grant the chance to reconsider. indicated they intend to appeal that ruling.

Boasberg filed Tuesday’s file stating that the Federal Trade Commission’s initial antitrust case against Facebook, Inc. was unsuccessful. “This Court rejected the Complaint last Juni.” Boasberg stated that while the core theory of the Commission remains unchanged in the updated complaint, the facts alleged to support those theories this time are stronger and more detailed, especially in relation to the contours Defendant’s alleged monopoly.

Meta, the Facebook owner, saw little movement in shares and was still optimistic for Tuesday’s news.

Boasberg rejected the FTC’s original complaint. He said that the FTC failed to prove Facebook’s monopoly over what it described as the personal social media services market. This market definition was meant to exclude social media platforms such as YouTube and LinkedIn that are used mostly for watching videos.

Boasberg acknowledged that the FTC may still have challenges in supporting its claims, but he stated Tuesday that the FTC had cleared the pleading bar so it could proceed to discovery.

Boasberg claimed that the FTC made this possible by providing sufficient alleged facts to establish Facebook’s market monopoly, assert its market share protection by entry barriers, and claim it has “willfully maintained” its dominance by anticompetitive behavior through the acquisitions of Instagram, WhatsApp, and other social media platforms.

Facebook’s argument that FTC’s vote for amended complaint filing should be invalidated because FTC Chair Lina Kahn should not have been present was also rejected by the judge. Facebook said Khan’s work and past writings had proven she prejudged the company’s liability. However, Khan participated in voting.

Boasberg said that Khan was acting in prosecutorial capacities and not in a judiciary role in relation to the vote.

Boasberg still delivered a modest blow to FTC by saying that it couldn’t continue with its claim that Facebook’s interoperability policy for developers helped it keep its dominant position. According to Boasberg, this is because Facebook abandoned these policies in 2018 after which it allegedly began enforcing them much earlier.

Judge wrote that the FTC’s ability to win summary judgment or trial and prove its case is “ever-present” in the end. The Court declined to speculate and concluded that the FTC has made a claim under Section 2 Sherman Act at the motion-to dismiss stage.

The spokesperson for Meta did not respond immediately.

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