Discussion of the Decisions
The FTC and 46 states separately sued Facebook in December 2020, alleging that Facebook violated Section 2 of the Sherman Act through its alleged buy or bury strategy of acquiring Instagram (2012) and WhatsApp (2014) and by adopting policies that prevented app developers that Facebook viewed as potential competitive threats from accessing Facebook s platform interfaces (API Policies). The states also sought relief under Section 7 of the Clayton Act, which prevents acquisitions that tend to substantially lessen competition.
District Court Judge James Boasberg dismissed the cases on different grounds:
The FTC Case. Judge Boasberg dismissed the FTC s monopolization claim for a failure to plausibly allege facts that Facebook has monopoly power. [1] The FTC defined the relevant product market served by Facebook as one for Personal Social Networking Services, which the FTC described as online services that enable and are used by people to maintain person
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