Facebook gained a brief reprieve Monday in its battle with antitrust regulators.
The U.S. District Court for the District of Columbia dismissed the Federal Trade Commission’s antitrust complaint towards the social media big, calling it “legally insufficient.”
“The FTC has failed to plead enough facts to plausibly establish a necessary element of all of its Section 2 claims — namely, that Facebook has monopoly power in the market for Personal Social Networking (PSN) Services,” Judge James E. Boasberg wrote in his ruling.
Facebook had filed to have the fits dismissed in March, arguing that the FTC had didn’t adequately outline a market the place Facebook had monopoly energy.
Boasberg appeared to agree with that argument. But whereas he dismissed the criticism, he didn’t dismiss the case totally, inviting the FTC to amend its criticism and convey the case again to courtroom.
The choose additionally advised the FTC that it was “on firmer ground” scrutinizing Facebook’s acquisitions of Instagram and WhatsApp than it was in pursuing Facebook’s refusal to permit for interoperability, which might permit customers to take their information to different platforms.
The FTC, now headed by Biden-appointee Lina Khan, is now prone to return with a brand new lawsuit that focuses extra immediately on Facebook’s acquisition historical past. Khan has constructed her fame on scrutinizing Big Tech.
Facebook inventory jumped almost 5 % after the ruling, sending its valuation above $1 trillion.
Dylan Byers is a senior media reporter for NBC News primarily based in Los Angeles.