Petition for Dismissal: Meta Challenges FTC’s Data Deficiency Lawsuit Against Social Network with Insufficient Evidence

Meta has filed a petition to the federal court requesting the dismissal of the case brought against them by the Federal Trade Commission (FTC) alleging anti-competitive practices in the social networking market following the acquisitions of WhatsApp and Instagram. The FTC filed the lawsuit back in 2020, and Facebook (at that time still operating under its original name) responded by asking the court to dismiss the case. The court, however, has instructed the FTC to provide further clarification before proceeding with the case.

Meta argues that the allegations made by the FTC are erroneous. Firstly, the FTC failed to define TikTok and YouTube as part of the social networking market, which led to the dominance of Facebook and Instagram in the market share. Meta contends that TikTok does not focus on connecting with friends and followers, while YouTube allows users to choose what they want to watch, making the FTC’s definition of the social networking market overly narrow, including only the main players like Facebook, Instagram, Snapchat, and WeMe.

Meta’s main contention is that the FTC must prove that each platform can effectively substitute the others in terms of user experience, rather than merely differentiating functions and claiming they operate in separate markets. Additionally, Meta asserts that the FTC cannot demonstrate harm to consumers resulting from the acquisition of Instagram and WhatsApp a decade ago, as the FTC had the opportunity to investigate these issues at the time but chose not to. Bringing up old issues for re-investigation is not the correct approach, especially considering the significant developments both platforms have undergone since Meta’s acquisition, notably WhatsApp’s removal of user fees.

The FTC has until May 24, 2024, to respond to the court’s request for further clarification.

TLDR: Meta challenges FTC’s allegations of anti-competitive behavior in the social networking market, citing inaccuracies in market definitions and lack of harm to consumers from past acquisitions. The court has requested the FTC to provide additional clarification before proceeding with the case.