The lawsuit alleges that Facebook has a monopoly power.
The state’s att 48 state attorney general’s coalition, led by New York’s Letia James, announced a new lawsuit against Facebook on Wednesday, alleging that the company was obstructing competition to protect its “monopoly power.”
The lawsuit comes just days after the Federal Trade Commission announced a separate lawsuit against the social media giant, alleging anti-rival practices.
“For nearly a decade, Facebook has been using its dominance and monopoly power to crush small competitors and wreak havoc on its competition, all at the expense of everyday users,” Attorney General James said in a statement. “Today, we are taking action to stand by the millions of consumers and many small businesses that have been harmed by Facebook’s illegal behavior.”
James said Facebook used its power to stifle competition so it could take advantage of users and make billions by converting personal data into cash cows. “
He added that almost every state in the country has been involved in bilateral lawsuits, “because Facebook’s efforts to dominate the market were as illegal as they were harmful.”
Separate FTC lawsuits allege that the company illegally carried out years of hostile practices while maintaining its “monopoly”.
“Personal social networking is at the heart of the lives of millions of Americans,” Ian Conner, director of the FTC’s Bureau of Competition, said in a statement. “Facebook’s actions to maintain and maintain its monopoly deprive consumers of the benefits of competition. Our goal is to reverse Facebook’s anti-competitive behavior and restore competition so that innovation and free competition can flourish.”
Facebook did not immediately respond to a request from ABC News for comment on Wednesday.
The company tweeted from its official communications account, however, that it was reviewing the complaint.
“We are reviewing the complaints and have yet to say,” the company said. “Years after the FTC cleared our acquisition, the government is now concerned about the wider business community or the impact it has on the people who choose our products every day.”
In a lawsuit filed by attorney generals in Washington, D.C. on Wednesday, Facebook uses a variety of methods to maintain its dominance, including gaining small or potential competitors and squashing third-party developers on its platform.
“Consumers suffer from fewer online options, and the power of Facebook only increases as it collects users’ private information and uses it for its business interests,” James’s office fee statement said.
The attorney general’s lawsuit alleges multiple violations of Section 2 of the Sherman Act and Section 7 of the Clayton Act on Facebook. It is seeking a court order to stop Facebook’s alleged anti-government behavior and prevent it from doing so in the future. In addition, the coalition says Facebook should be banned from making more than એક્ 10 million or more in acquisitions without prior notice to the states. In the end, it seeks indefinite relief.
FTC’s lawsuit cites Facebook’s 2012 Instagram and 2014 WhatsApp acquisitions as examples of its monopoly power, and the company has accused software developers of alleged hostile conditions.
The FTC lawsuit seeks a permanent ruling in federal court that may require Facebook to sell Instagram and WhatsApp. It wants Facebook to issue notices and approvals for future mergers and acquisitions, as well as end its alleged antiquated petty conditions for software developers.
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