Facebook’s shares jumped 4.2% to $355.64 after federal court has dismissed two separate anti-trust lawsuits filed against the social networking giant.
Judge James Boasberg ruled that the Federal Trade Commission (FTC)’s anti-trust complaint against the social networking giant was too vague.
Another separate anti-competition lawsuit filed by a coalition of states was thrown out because the alleged violations occurred too long ago.
This resulted in Facebook’s market value rising above $1trillion for the first time ever.
In the US District Court for the District of Columbia ruling, Judge Boasberg wrote that the FTC’s complaint was “legally insufficient” and had to be dismissed, because the FTC had “failed to plead enough facts” to back up its claim that Facebook was stifling competition.
The FTC’s lawsuit had requested that the technology giant, which also owns Instagram and WhatsApp, be broken up.
“The FTC’s complaint says almost nothing concrete on the key question of how much power Facebook actually had, and still has, in a properly defined anti-trust product market,” wrote Judge Boasberg.
“It is almost as if the agency expects the court to simply nod to the conventional wisdom that Facebook is a monopolist.”
While this is a setback for the FTC that some analysts say could have repercussions for the future of anti-competition law in the US, the watchdog can re-file the charges and has until July 28 to do so.
Separately, Judge Boasberg also dismissed an anti-competition lawsuit brought by a coalition of 45 US states together with the FTC.
This lawsuit had also sought to force Facebook to divest Instagram and WhatsApp. It related to Facebook’s acquisition of the two apps in 2012 and 2014.
In March, Facebook petitioned the federal court in the US to dismiss them, describing the FTC complaint as “nonsensical”.
Following steady user growth and a dominant space in the digital advertising market ensuring revenues, Facebook’s share price climbed to $190 by February 2018.
On March 21, advertisers Mozilla and Commerzbank suspended ads on Facebook.
On March 23, Elon Musk had the official Facebook pages for his companies Tesla and SpaceX deleted.
Mark Zuckenberg tried to reassure users “the most important actions to prevent this from happening again today we have already taken years ago.”
Cambridge Analytica is at the center of a row over whether it used the personal data of millions of Facebook users to sway the outcome of the US 2016 presidential election and the UK Brexit referendum.
In Mark Zuckerberg’s online statement he offered a timeline of how Facebook’s data permission agreements with users and other companies had changed since the 2014 personality quiz app was able to scrape data from quiz takers and their contacts without their expressed permission.
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