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US District Judge Dismisses FTC, NY Lawsuits Against Facebook

The FTC’s antitrust complaint against Facebook is “legally insufficient and must therefore be dismissed,” U.S. District Judge James Boasberg ruled Monday in FTC v. Facebook (20-3590, in Pacer) (see 2012090062). The agency offered a defective case that could “conceivably be…

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overcome by re-pleading,” Boasberg wrote, dismissing the complaint before the U.S. District Court for the District of Columbia. The agency 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,” he wrote. The FTC claimed in the complaint that the company has a dominant market share higher than 60%. The agency was unable to offer metrics or methods it used to “calculate Facebook’s market share,” which “renders its vague ‘60%-plus’ assertion too speculative and conclusory to go forward,” Boasberg wrote. He also dismissed New York’s case against Facebook in a separate motion (20-3589, in Pacer). Facebook is "pleased that today’s decisions recognize the defects in the government complaints filed against Facebook," said the company 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 office for New York Attorney General Letitia James is "reviewing this decision and considering our legal options," a spokesperson said. The FTC didn’t comment. Sen. Josh Hawley, R-Mo., called it a “deeply disappointing” decision from the court, which “acknowledged” Facebook’s “massive market power but essentially shrugged its shoulders.”