A group of U.S. states led by New York is reportedly investigating Facebook Inc for possible antitrust violations and is planning to file a lawsuit next week against the tech giant, Reuters reported
This will be the second major lawsuit filed against a big tech company this year. We reported in October that the U.S Justice Department filed a lawsuit against Google over antitrust violations, alleging that Google abused its dominance in online search and advertising to stifle competition and harm consumers.
In the latest development, more than 40 U.S states are planning to file a lawsuit against Facebook, according to the report.
It is unclear what the states plan to include in the complaint. But recently, Facebook has been heavily criticized for always trying to dominate Social Media by strategically acquiring potential rivals, often at a big premium. Critics often cite acquisition of Instagram in 2012 by Facebook and WhatsApp in 2014.
During a recent testimony at the U.S Congress, Facebook CEO, Mark Zuckerberg defended the acquisitions, arguing that the company has many competitors, including other tech giants.
He also said that the purchase of companies such as Instagram and WhatsApp helped them expand from small, insignificant companies into powerhouses.
The U.S Justice Department and The Federal Trade Commission began antitrust investigations into the activities of the four big tech companies in 2019, which include Amazon.com Inc and Apple Inc.
When contacted by Reuters, Facebook reportedly declined to comment. A spokesman for the New York attorney general’s office also declined to comment.