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Facebook asked a court to reject state and federal antitrust lawsuits that accuse it of abusing its market power on social media to crush smaller competitors.
The social networking giant said on Wednesday that the complaints “do not credibly state” that its conduct has harmed consumers or market competition.
The antitrust lawsuits, filed in December by the Federal Trade Commission and 48 states, seek solutions that may include a forced dismemberment of the popular Instagram and WhatsApp services of the social network.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| FB | FACEBOOK, INC. | 265.17 | -0.57 | -0.21% |
“As we said when the FTC and state attorney generals announced these processes, people around the world use our products not because they need to, but because we make their lives better,” said Facebook in a statement.
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The FTC lawsuit claims that Facebook has engaged in a “systematic strategy” to eliminate its competition, including the purchase of smaller, rising rivals like Instagram in 2012 and WhatsApp in 2014. New York Attorney General Letitia James, in announcing the state complaint echoed that sentiment, saying that Facebook “used its monopoly power to crush smaller rivals and eliminate competition, all at the expense of ordinary users”.
The FTC and the New York attorney general’s office did not immediately respond to messages for comment.
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Big tech companies are facing growing opposition from lawmakers on both sides of the aisle over the power they have amassed over the past decade. The pressure is unlikely to decrease. President Joe Biden said that a separation of technology giants should be seriously considered.
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Lawmakers and consumer advocates have accused Facebook of anti-competitive behavior, mainly by buying aspiring smaller rivals like Instagram and WhatsApp and by copying competitors.
Critics say such tactics crush competition and may limit viable alternatives for consumers looking, for example, for comparable services that do less tracking for targeted advertising. Businesses, including family stores, may have to pay more for ads if they have fewer options to reach consumers online. Processes can take years to resolve.