Doomsday for Facebook: FTC and 46 states launch massive lawsuit against social media group for predatory and monopolistic behaviour that could force it to sell Instagram and WhatsApp
Facebook could be forced to sell off Instagram and WhatsApp under a massive lawsuit backed by 46 US states and federal regulators which accuses the social media giant of running an illegal monopoly.
The suit filed on Wednesday, spearheaded by New York Attorney General Letitia James, accuses Facebook of illegally acquiring its competitors in a 'predatory' manner in order to dominate the market.
'For nearly a decade, Facebook has used its dominance and monopoly power to crush smaller rivals, snuff out competition, all at the expense of everyday users,' said James.
'Facebook targets competitors with a ‘buy or bury’ approach: if they refuse to be bought out, Facebook tries to squeeze every bit of oxygen out of the room for these companies,' her office said.
The coalition of 46 states, Washington DC and Guam has called on judges to rule that Facebook's acquisition of WhatsApp and Instagram were illegal.
The Federal Trade Commission has filed its own lawsuit, accusing Facebook of 'squelching' the threat from WhatsApp and Instagram - an attitude reflected in a 2008 email by Zuckerberg which said 'it is better to buy than compete'.
The action by both Democratic and Republican officials highlights the growing political consensus to hold Big Tech accountable, and comes weeks after the Department of Justice launched a suit against Google which accused the $1trillion firm of using its market power to fend off rivals.
Facebook boss Mark Zuckerberg and Twitter chief Jack Dorsey were both hauled in for a highly-politicised Senate hearing last month, and Donald Trump has feuded with both firms over alleged bias and the fact-checking of his posts.
The federal lawsuit comes just weeks before Trump leaves office to be replaced by Joe Biden, who was less combative about Big Tech during the campaign.
In a statement to DailyMail.com, Facebook's general counsel Jennifer Newstead blasted the litigation, calling it 'revisionist history.'
'Antitrust laws exist to protect consumers and promote innovation, not to punish successful businesses,' she said. 'Instagram and WhatsApp became the incredible products they are today because Facebook invested billions of dollars, and years of innovation and expertise, to develop new features and better experiences for the millions who enjoy those products.'
New lawsuits from 46 states and the FTC accuse Facebook CEO Mark Zuckerberg of anti-competitive conduct and seek to break up the company
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