Facebook’s Shares Grow After Antitrust Complaint Reject

Share post:

Facebook shares rose more than 4% after a U.S. judge on Monday dismissed antitrust appeals by states and territories against Facebook that would force the social media platform to sell Instagram and WhatsApp, saying the federal complaint was “legally insufficient.”

Facebook’s market capitalization rose above $1 trillion for the first time as its share price rose.

The dismissal was the first major blow to state and federal lawsuits against big tech firms for alleged abuses of their massive market power.

Judge James Boasberg of the U.S. District Court for the District of Columbia said the FTC was unable to make clear that Facebook had a clear monopoly on the social networking market, but said the FTC could file a new complaint by July 29.

He also dismissed a lawsuit by several US states that had waited too long to challenge the acquisitions of Instagram and WhatsApp in 2012 and 2014.

A spokesperson for the New York Attorney General’s office said it was “considering our legal options.”

Still, Judge Boasberg also said that the FTC was on firmer ground in considering the acquisitions of Instagram and WhatsApp since the court rejected Facebook’s rebuttal that the FTC had no authority to seek an injunction against those purchases.

The FTC and a number of U.S. states filed separate lawsuits last year accusing Facebook of violating antitrust rules to keep smaller competitors at bay by snapping up rivals such as Instagram for $1 billion and WhatsApp for $19 billion.

For more information, read the original story in Reuters

SUBSCRIBE NOW

Related articles

Kaspersky to shut down its US business due to sanctions

Russian cybersecurity firm Kaspersky Lab announced it will cease its U.S. operations starting July 20, following sanctions from...

Intuit lays off 1,800 people amid a shift to AI

Intuit, the company behind QuickBooks, Credit Karma, and TurboTax, is laying off 1,800 employees, which is about 10%...

VMWare revenue drops by $600 million but Broadcom assures investors growth plan is on track

In its first full quarter under Broadcom's ownership, VMware's revenue fell by $600 million, dropping to $2.7 billion....

Apple faces backlash over recent ads

Apple is currently facing significant public backlash due to a controversial advertisement featuring a hydraulic press crushing various...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways