Economy
Facebook sued by 46 states, FTC for alleged antitrust violations
In a bipartisan move, a group of 46 U.S. state attorneys general, led by New York’s attorney general, launched a colossal antitrust lawsuit against Facebook on Wednesday, alleging that the social media giant has been operating as an illegal monopoly. Separately, the Federal Trade Commission (FTC) launched its own lawsuit, alleging antitrust violations, which The Wall Street Journal called “it’s most ambitious [case] in recent memory”.
The core of the allegations surround claims that Facebook’s purchasing of Instagram in 2012 for $1 billion and WhatsApp in 2014 for $19 billion, in addition to other tinier technology companies, were executed for the purpose of crushing the competition.
The FTC, in its filing, wants to make Facebook sell both social media apps.
The FTC’s lawsuit comes after a more than year-long investigation into the company, with the commission voting 3-2 in favor of filing the case in a Washington, DC federal court. The commission’s suit had been in the works for months, The Journal reports.
“After identifying two significant competitive threats to its dominant position—Instagram and WhatsApp—Facebook moved to squelch those threats by buying the companies, reflecting CEO Mark Zuckerberg’s view, expressed in a 2008 email, that ‘it is better to buy than compete,’” the FTC’s lawsuit states.
New York Attorney General Letitia James (D) announced on Wednesday the 46-state lawsuit, which also includes the District of Columbia and Guam, saying in a Twitter thread, “We are taking action to stand up for the millions of consumers and many small businesses that have been harmed by Facebook’s illegal behavior.”
“Facebook has used its monopoly power to crush smaller rivals and snuff out competition, all at the expense of everyday users. Instead of improving its own product, Facebook took advantage of consumers and made billions of dollars converting their personal data into a cash cow,” James added.
Facebook responded to the lawsuit Wednesday afternoon on Twitter, saying that it is reviewing the complaints and will offer more information from its end “soon.”
“We’re reviewing the complaints & will have more to say soon,” the statement reads. “Years after the FTC cleared our acquisitions, the government now wants a do-over with no regard for the impact that precedent would have on the broader business community or the people who choose our products every day.”
You can follow Douglas Braff on Twitter @Douglas_P_Braff.
New York City Mayor Eric Adams has unveiled a new plan to potentially place thousands of asylum seekers in private residences while compensating local homeowners and landlords.
During a City Hall press conference, Mayor Adams expressed his vision to move beyond housing single migrant men in churches and mosques and explore the option of utilizing private dwellings.
Adams emphasized the potential savings that could be achieved by redirecting the estimated $4.3 billion budget for housing the influx of migrants into everyday houses of worship and private residences, rather than corporate entities. The mayor suggested that recycling local dollars would benefit both the city and its residents.
According to reports from the New York Post, Adams said, “It is my vision to take the next step to this faith-based locales and then move to a private residence.”
“We can take that $4.2 billion — $4.3 [billion] maybe now — that we anticipate we have to spend and we can put it back in the pockets of everyday, everyday houses of worship instead of putting it in the pockets of corporations.”
“We should be recycling our own dollars,” he continued.
Acknowledging potential obstacles, Adams alluded to a “30-day rule” that City Hall would need to overcome. However, he did not provide further details on the rule or the aspects of implementing the plan.
With over 72,000 individuals having arrived in New York City since last spring, the mayor stressed the urgency of finding sustainable housing solutions beyond taxpayer-funded emergency shelters and hotels. The current system, which accommodates approximately 45,000 people, is deemed unsustainable given the continuous influx of migrants.
Adams indicated that the city would seek ways to bypass existing government regulations that prohibit housing homeless individuals in private homes. Additionally, City Hall aims to work with the state legislature to facilitate agreements that bring illegal basement apartments up to code, presenting a more affordable and viable housing alternative.
The estimated cost of the ongoing crisis is expected to exceed the current $4.3 billion budget, particularly as daily arrivals continue to increase. Last week alone, the city registered 2,200 new arrivals. To address cost concerns, Adams’ proposal to house asylum seekers in houses of worship is projected to cost approximately $125 per night, significantly less than the current expenditure of $380 per night in converted hotels.
Mayor Adams’ plan to utilize private residences represents a significant development in New York City’s efforts to address the housing needs of asylum seekers. However, the feasibility and implementation of this proposal, including overcoming legal and logistical challenges, remain to be seen.
Follow Alexander Carter on Twitter @AlexCarterDC for more!
-
Podcast7 days agoBeyond the Border: Migration Is Being Weaponized to Control Us
-
Featured5 days agoDHS Alert: suspected terrorist on southwest border poses ‘imminent’ national security threat to U.S.
-
Healthcare5 days agoOklahoma Mother Sues School District After Alleged Assault by Trans Student
-
National Security6 days agoTen cartel members killed, cops injured, in Mexico border state shootout
