The trillion dollar club of companies, started by Apple in 2018, has a new member: since Monday Mark ZuckerbergThe creation of this company has joined the ranks. Earlier this week, Facebook’s valuation rose to $ 1 billion after a federal judge fired an antitrust case attempting to crack down on the company. The judge ruled that the case, brought by the Federal Trade Commission, lacked “sufficient facts to plausibly establish” Facebook’s monopoly in the personal social media market.
“It’s almost as if the agency expects the court to just nod to the conventional wisdom that Facebook is a monopolist,” Judge said. James boasberg wrote in his opinion, ruling that the FTC “did not provide any indication of the metric (s) or method (s) it used to calculate” Facebook’s market share of “more than 60%.” However, Boasberg noted, “this flaw could possibly be overcome with a new plea,” leaving the door open for the FTC to amend its claim. “If this were a sports match, it would be a bad start to the match. But it does not mean the end of the game, in any way, “said the former president of the FTC. William Kovacic saying Reverse.
In requesting the dissolution of Facebook, the FTC claimed that the company illegally cracked down on competition by buying smaller companies, such as Instagram, which was seen as a threat to its power, and by denying competing apps access to its platform, CNN. reports. Boasberg completely ruled out a pull apart antitrust case brought against Facebook by a group of 48 state attorneys general. States had raised similar challenges to Facebook’s acquisitions and interoperability permits – objections that Boasberg said came years too late.
Monday’s pair of rulings underscore the difficulty of involving Facebook from a legal perspective. And a parallel effort to legislate around big tech companies is also running into obstacles. Various proposals to regulate companies such as Apple, Google, Facebook and Amazon advanced in the House of Representatives last week. But like Axios notes, “The new laws are narrowly designed to target a handful of companies and practices” and “could be out of date before the appeals process is over.”
Facebook is one of several tech giants that Washington is trying to curb through lawsuits, investigations, and proposed legislation – efforts that have reportedly it has been a boon to the law firms hired to go after them. According to the New York TimesGoogle has hired 16 attorneys from six law firms to defend the company against multiple antitrust lawsuits. Amazon, Facebook and Google are also adding antitrust experts directly to their internal legal teams, a move former FTC Chairman Kovacic told the outlet “reflects real change.”
William Baer, former head of the antitrust division during the presidency Barack Obama, notes that the strategy that Big Tech companies are using to defend themselves against these cases “emphasizes the resource disparity between what the government can throw at these issues and the virtually unlimited resources of these companies.” The government has less money to offer antitrust lawyers on demand and also faces potential conflicts of interest in hiring them.
Even as its monopolistic practices are under scrutiny, Facebook on Tuesday launched its latest attempt to subsume its rivals: the Bulletin, a “substack way of distributing free and paid newsletters” in which dozens of writers, but reportedly not the “controversial” – they are participating, CNN Brian Stelter reports. The social media giant has a unique way to enter the email newsletter market. “Facebook’s spin on the product is … Facebook”, Recode Peter kafka wrote earlier this month. “Specifically, the massive reach of Facebook, with 2.85 billion users worldwide, and its ability to target and segment people who might be receptive to reading and paying for a newsletter that covers topics that interest them.”
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