Facebook Says SCOTUS Ruling Means FTC Antitrust Suit Should Be Tossed

Facebook stated a US Supreme Court decision last week on the Federal Trade Commission’s (FTC) authority to recover money for consumers means the agency’s monopoly lawsuit against the company must be dismissed, reported Bloomberg.

Facebook argued in a court filing Tuesday, April 27, that the Supreme Court ruling bolsters its position that the FTC can’t pursue the antitrust lawsuit in federal court.

The FTC sued Facebook in December, accusing the social media company of abusing its dominance to thwart competition in violation of antitrust laws. The agency is asking for a court order requiring Facebook to unwind its acquisitions of Instagram and WhatsApp.

“The Supreme Court’s decision and its reasoning support Facebook’s argument that the FTC’s suit improperly circumvents limits on its authority,” Facebook stated in the filing in Washington federal court.

The Supreme Court’s unanimous decision was centered on a provision in federal law that the FTC has used to recover money for defrauded consumers. The agency claims the ruling puts at risk US$2.4 billion that the FTC is seeking to recover for consumers in 24 pending lawsuits.

Although the FTC’s case focuses on competition and does not seek monetary relief for consumers, the complaint relies on the same authority at issue in the Supreme Court decision, section 13(b) of the Federal Trade Commission Act. The FTC also can sue companies in its in-house administrative court but chose to file the Facebook case in federal court where a group of states also sued the company.