On Monday, a federal court dismissed a parallel case filed by the 48-state Attorney General for an antitrust ban on the Federal Trade Commission for Facebook, with Facebook on Instagram and WhatsApp.
Facebook’s share price has risen more than 4% following Monday’s ruling, for the first time the market capitalization of social media companies has exceeded $ 1 trillion.
“We are pleased that today’s decisions recognize the defects in the government complaints against Facebook,” the company said in a statement. “We compete fairly every day to earn people’s time and attention and will continue to deliver great products for the people and businesses that use our services.”
The FTC sued the company together with 48 state attorney generals last December, claiming that Facebook was engaged in a systematic strategy to eliminate threats to monopolies, including the acquisitions of Instagram and WhatsApp previously deleted by the FTC in 2012 and 2014, respectively. did.
However, the court ruled that the FTC failed to prove the basis of the main argument and case on Monday. Facebook has a monopoly on the personal social networking market in the United States.
“Although the Court does not agree with all of Facebook’s contentions here, it ultimately concurs that the agency’s Complaint is legally insufficient and must therefore be dismissed,” reads the filing from the U.S. District Court for the District of Columbia. “The FTC has failed to plead enough facts to plausibly establish a necessary element of all of its Section 2 claims — namely, that Facebook has monopoly power in the market for Personal Social Networking (PSN) Services.”
The court found the FTC did not provide enough detailed data to prove Facebook has market power in the loosely defined market for personal social networking services.
“The Complaint is undoubtedly light on specific factual allegations regarding consumer-switching preferences,” the court wrote. “These allegations — which do not even provide an estimated actual figure or range for Facebook’s market share at any point over the past ten years — ultimately fall short of plausibly establishing that Facebook holds market power.”