Sun Sentinel Broward Edition

FTC takes new stab at Facebook in updated suit

- By Cecilia Kang

WASHINGTON — The Federal Trade Commission took new aim at Facebook on Thursday, beefing up its accusation­s that the company was a monopoly that illegally crushed competitio­n, in an attempt to overcome the skepticism of a federal judge who threw out the agency’s original case two months ago.

The lawsuit submitted Thursday contains the same overall arguments as the original, saying that Facebook’s acquisitio­ns of Instagram and WhatsApp were made to create a “moat” around its monopoly in social networking.

But the updated lawsuit is nearly twice as long and includes more facts and analysis that the agency says better support the government’s allegation­s.

“Facebook lacked the business acumen and technical talent to survive the transition to mobile,” Holly Vedova, the acting director of the bureau of competitio­n at the agency, said in a statement. “After failing to compete with new innovators, Facebook illegally bought or buried them when their popularity became an existentia­l threat.”

Facebook responded on Twitter, “We are reviewing the FTC’s amended complaint and will have more to say soon.”

The agency had to refile the case after Judge James Boasberg of the District Court of the District of Columbia said in June that the government had not provided enough evidence that Facebook was a monopoly in social networking.

The judge’s decision, and a similar one he made in a case against the company brought by more than 40 states, dealt a stunning blow to regulators’ attempts to rein in Big Tech.

His decision presented the first major test for Lina Khan, the FTC chair, who was only days into her role at the time.

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