{"id":28060,"date":"2021-03-10T10:15:15","date_gmt":"2021-03-10T18:15:15","guid":{"rendered":"https:\/\/about.fb.com\/?p=28060"},"modified":"2021-03-10T10:13:48","modified_gmt":"2021-03-10T18:13:48","slug":"motions-to-dismiss-ftc-state-ag-lawsuits","status":"publish","type":"post","link":"https:\/\/about.fb.com\/news\/2021\/03\/motions-to-dismiss-ftc-state-ag-lawsuits\/","title":{"rendered":"Facebook Files Motions to Dismiss Lawsuits Brought by FTC, State Attorneys General"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Today we filed motions<\/span><span style=\"font-weight: 400;\">\u00a0to dismiss the antitrust lawsuits brought by <a href=\"https:\/\/about.fb.com\/wp-content\/uploads\/2021\/03\/2021-03-10-56-1-Memo-ISO-FBs-MTD-FTCs-Complaint.pdf\">the Federal Trade Commission<\/a> and <a href=\"https:\/\/about.fb.com\/wp-content\/uploads\/2021\/03\/2021-03-10-114-1-Memo-ISO-FBs-MTD-States-Complaint.pdf\">state attorneys general<\/a>. Antitrust laws are intended to promote competition and protect consumers. These complaints do not credibly claim that our conduct harmed either. Relying on a market definition that doesn\u2019t make sense, these cases attempt a do-over \u2014 challenging acquisitions cleared by the FTC years ago, after enormous investment by Facebook to make them into the apps people enjoy today. The government ignores the realities of the fierce competition we face every day and sends a dangerous message that no sale is ever final. <\/span><a href=\"https:\/\/about.fb.com\/news\/2020\/12\/lawsuits-filed-by-the-ftc-and-state-attorneys-general-are-revisionist-history\/\"><span style=\"font-weight: 400;\">As we said when the FTC and the state attorneys general announced these lawsuits<\/span><\/a><span style=\"font-weight: 400;\">, people around the world use our products not because they have to, but because we make their lives better. Public policy challenges in areas like harmful content, election security and protecting people\u2019s privacy should be addressed through updated regulations \u2014 not through misguided antitrust claims.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Below we provide a brief overview of the arguments in our motions.<\/span><\/p>\n<h3>Our Motion to Dismiss the FTC\u2019s Lawsuit<\/h3>\n<p><span style=\"font-weight: 400;\">No government lawsuit similar to this one has been brought in the 130-year history of the Sherman Act, and for good reason: The FTC has not alleged facts amounting to a plausible antitrust case. <\/span><span style=\"font-weight: 400;\">The<\/span><span style=\"font-weight: 400;\"> FTC\u2019s case against Facebook ignores the reality of the dynamic, intensely competitive high-tech industry in which Facebook operates.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>The FTC has not alleged a plausible relevant antitrust market.<\/i><\/b> <span style=\"font-weight: 400;\">It is the FTC\u2019s burden to allege facts establishing a market that includes all products that consumers consider acceptable substitutes. Virtually ignoring the relentlessly competitive business that provides Facebook with substantially all of its revenues (advertising), the FTC purports instead to define a free \u201cpersonal social networking\u201d user market with only the vaguest of limits and without reference to what consumers consider acceptable substitutes. The FTC does not allege any facts that would permit the court to discern which products (or even which features of Facebook) are in the alleged market and which are not.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>The FTC has not plausibly alleged monopoly power<\/i><\/b><b>. <\/b><span style=\"font-weight: 400;\">The FTC also fails to plausibly allege that Facebook has monopoly power (e.g., the power to increase prices or restrict output without losing market share). The FTC cannot establish that Facebook has increased prices or restricted output because the agency acknowledges that Facebook\u2019s products are offered for free and in unlimited quantities. <\/span><span style=\"font-weight: 400;\">The FTC\u2019s complaint contains a single bare, conclusory allegation that Facebook has a market share \u201cin excess of 60%,\u201d which must be disregarded because it is not supported by any facts.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>The FTC has not plausibly alleged unlawful exclusionary conduct.<\/i><\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The FTC does not plausibly allege that Facebook\u2019s acquisitions of Instagram and WhatsApp were anticompetitive. The FTC reviewed both acquisitions before consummation and decided to allow them to close.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The FTC\u2019s claim that Facebook was required to share its proprietary platform with rivals is precluded by controlling Supreme Court precedent.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Moreover, none of the challenged conduct is plausibly alleged to have harmed competition and consumers.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>The FTC lacks statutory authority to maintain this suit.<\/i><\/b> <span style=\"font-weight: 400;\">Section 13(b) of the Federal Trade Commission Act, the sole claimed source of the FTC\u2019s authority here, authorizes the FTC to proceed in federal district court <\/span><i><span style=\"font-weight: 400;\">only<\/span><\/i><span style=\"font-weight: 400;\"> to stop ongoing or imminent violations of law. It does <\/span><i><span style=\"font-weight: 400;\">not<\/span><\/i><span style=\"font-weight: 400;\"> authorize actions to remedy past conduct, which is all the FTC challenges here.\u00a0<\/span><\/li>\n<\/ul>\n<h3>Our Motion to Dismiss the State AGs\u2019 Lawsuit<\/h3>\n<p><span style=\"font-weight: 400;\">The complaint filed by the state attorneys general fails on multiple grounds. It does not and cannot assert that their citizens paid higher prices, that output was reduced, or that any objective measure of quality declined as a result of Facebook\u2019s challenged actions. Instead, the states, even more explicitly than the FTC, ground their lawsuit in public policy concerns \u2014 digital privacy, for example \u2014 that are not antitrust law concerns. And, like the FTC, the states focus their attacks on what Facebook did long ago. Their afterthought claims are brought by the wrong parties, are untimely, and are empty as a matter of antitrust law.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>The states lack standing to bring this case. <\/i><\/b><span style=\"font-weight: 400;\">The states sue not as federal law enforcers or for injuries suffered by the states themselves but as \u201c<\/span><i><span style=\"font-weight: 400;\">parens patriae<\/span><\/i><span style=\"font-weight: 400;\">\u201d on behalf of their citizens. But the states fail to allege the required interest (like preventing a general harm to their states\u2019 economies) to give them standing to sue in that capacity.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>The states\u2019 claims based on Facebook\u2019s acquisitions are barred by the doctrine of laches, or unfair delay.<\/i><\/b><span style=\"font-weight: 400;\"> The states waited far too long to act \u2014 far longer than the four years that is the outer limit of the yardstick for laches when states and private parties sue under federal antitrust laws. Facebook would be unfairly prejudiced if the case were allowed to proceed.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>The states fail to state a plausible claim that Facebook\u2019s acquisitions violated the Clayton Act.<\/i><\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The states have alleged only that Instagram and WhatsApp were <\/span><i><span style=\"font-weight: 400;\">potential <\/span><\/i><span style=\"font-weight: 400;\">competitors and have only speculated that these potential rivals could have brought more benefits to competition and consumers if they had not been acquired by Facebook.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">No court has adopted the theory the states seek to enshrine in law for the first time. The states\u2019 claims fail to allege that, at the time of the acquisitions, it was likely that either Instagram or WhatsApp was poised to enter the claimed relevant product market, and provide even less basis for the entirely implausible claim that they were the only potential entrants capable of bringing the benefits of competition to consumers.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b><i>The states\u2019 Section 2 claim tracks the FTC\u2019s parallel claim, and their complaint likewise fails to plead the elements of that claim.<\/i><\/b><span style=\"font-weight: 400;\"> The states provide additional atmospherics but rely almost entirely on the same three lawful actions challenged by the FTC; they allege no <\/span><i><span style=\"font-weight: 400;\">facts <\/span><\/i><span style=\"font-weight: 400;\">establishing a plausible claim that Facebook engaged in unlawful exclusionary conduct that harmed competition and ultimately consumers.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Our acquisitions have been good for competition, good for advertisers and good for people. Our products remain popular because we constantly evolve, innovate and invest in better experiences for people against world-class competitors. We believe the government should be denied the do-over it seeks.\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Learn more about how we\u2019re<\/span><\/i> <a href=\"https:\/\/about.fb.com\/building-to-compete\/\"><i><span style=\"font-weight: 400;\">building to compete<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">.<\/span><\/i><\/p>\n<div class=\"ms-editor-squiggler\" style=\"color: initial; font: initial; font-feature-settings: initial; font-kerning: initial; font-optical-sizing: initial; font-variation-settings: initial; text-orientation: initial; text-rendering: initial; -webkit-font-smoothing: initial; -webkit-locale: initial; -webkit-text-orientation: initial; -webkit-writing-mode: initial; writing-mode: initial; zoom: initial; place-content: initial; place-items: initial; place-self: initial; alignment-baseline: initial; animation: initial; appearance: initial; aspect-ratio: initial; backdrop-filter: initial; backface-visibility: initial; background: initial; 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These complaints do not credibly claim that our conduct harmed either.","protected":false},"author":4947538,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"{title}\n\n{excerpt}\n\n{url}","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false,"jetpack_post_was_ever_published":false},"categories":[196,13,139,26],"tags":[],"class_list":["post-28060","post","type-post","status-publish","format-standard","hentry","category-competition-and-innovation","category-meta","category-public-policy","category-recent-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Facebook Files Motions to Dismiss Lawsuits Brought by FTC, State Attorneys General<\/title>\n<meta name=\"description\" content=\"Antitrust laws are intended to promote competition and protect consumers. These complaints do not credibly claim that our conduct harmed either.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/about.fb.com\/news\/2021\/03\/motions-to-dismiss-ftc-state-ag-lawsuits\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Facebook Files Motions to Dismiss Lawsuits Brought by FTC, State Attorneys General\" \/>\n<meta property=\"og:description\" content=\"Antitrust laws are intended to promote competition and protect consumers. 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