A group of U.S. states led by New York, on Wednesday, filed a lawsuit in Washington against Facebook for violations of antitrust law, according to CNN Business. Facebook is accused of anticompetitive behavior in the wake of the much-criticized acquisition of Instagram and WhatsApp’s social media platforms.
- The U.S. Federal Trade Commission (FTC) seeks a permanent injunction against Facebook, requiring the company to divest assets, including Instagram and WhatsApp.
- The state suit calls for a court order requiring Facebook to notify state officials of any future acquisitions valued at $10 million or more.
- The suit comes about 14 months after the New York Attorney General Letitia James announced that his office and others are investigating Facebook’s anti-competitive practices.
- FTC has been conducting its own antitrust investigation of Facebook since June 2019.
- Facebook has defended its acquisitions, saying it has helped the social media platforms expand from small, insignificant companies into powerhouses.
- Facebook becomes the second major tech company sued this year alongside Google for antitrust violations.
Facebook’s stock is currently declining. FB: NASDAQ is down 1.40% on premarket
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