WASHINGTON, D.C. (AP) — A federal judge dismissed antitrust cases filed by the Federal Trade Commission and a coalition of state attorneys general against Facebook on Monday, striking a major setback to regulators’ efforts to reign in internet behemoths. The complaints were “legally deficient” and didn’t give enough evidence to prove that Facebook was a monopoly, according to U.S. District Judge James Boasberg. The complaint was dismissed, but not the case, so the FTC could file another lawsuit. “These charges, which don’t even include an estimated real figure or range for Facebook’s market share at any point in the last ten years,” he stated, “far short of persuasively showing that Facebook wields market power.” The FTC said it is “closely analyzing the opinion and determining the best path forward” in a statement. A new complaint must be filed within 30 days of the expiration of the previous one. Boasberg, on the other hand, closed that door for the states by dismissing their separate complaint altogether. In December 2020, the US government and 48 states and districts sued Facebook, accusing it of abusing its market position in social networking to squash smaller competitors and seeking remedies that might include a forced spinoff of Facebook’s Instagram and WhatsApp messaging services. According to the FTC, Facebook used a “systematic plan” to remove competition, including purchasing smaller up-and-coming competitors like Instagram in 2012 and WhatsApp in 2014. Facebook “used its dominant power to crush smaller rivals and suffocate competition, all at the expense of average consumers,” according to New York Attorney General Letitia James, who filed the lawsuit. In an emailed statement, Facebook said: “We are relieved that today’s rulings acknowledge the flaws in the government’s charges against Facebook. Every day, we compete fairly for people’s time and attention, and we will continue to provide excellent service to the people and businesses who utilize our services.” While the judge found the FTC’s arguments unsatisfactory, Richard Hamilton Jr., a former prosecutor and Justice Department antitrust attorney, said the judge provided the agency with a road map for how to strengthen its case in a future round. “Whether it’s the government or a private organization, you still have to make a strong case,” Hamilton said. According to Boasberg, the FTC failed to show how it came to the conclusion that Facebook controls 60% of the social networking market and how that market power is evaluated. Consumer advocacy group Public Citizen’s competition policy expert, Alex Harman, said: “For some reason, courts have a hard time with that market description. It’s Exhibit A as to why the laws must be amended.” The ruling “illustrates the problems regulators face right now bringing antitrust suits in markets without prices, like Facebook’s, but also Google’s, and in markets where huge, dominant firms offer suites of products that don’t neatly fit into the mold of well-defined markets like aluminum ingot or crumb,” said Rebecca Allensworth, an antitrust law professor at Vanderbilt University. Last week, the House Judiciary Committee approved and submitted to the entire House of Representatives an ambitious package of antitrust legislation that may lead to the breakup of Facebook, Google, Amazon, and Apple. “Facebook is a monopolist, as the Federal Trade Commission and 48 state attorneys general have alleged, and it has abused its monopoly power to buy or bury its competitive threats,” said Rep. Jerrold Nadler, D-N.Y., who chairs the Judiciary panel, and Rep. David Cicilline, D-R.I., the bill’s lead sponsor. “In the next weeks, we will strive to pass this legislation to provide American businesses and consumers more choice, innovation, and opportunity.” Rep. Ken Buck of Colorado, the bill’s primary Republican backer, said the decision was “amazing.” “Antitrust reform is critically needed, as evidenced by this study. Our antitrust enforcers need more tools and resources to take after Big Tech corporations who are involved in anticompetitive behavior.” Last October, the Trump Justice Department filed an unprecedented antitrust lawsuit against Google, accusing the corporation of abusing its dominance in online search to impede competition and innovation at the expense of consumers, with the support of around a dozen states. The case isn’t set to go to trial in federal court for another almost three years. Continue reading