Skip to main content

Market Overview

FTC Plans Antitrust Lawsuit Against Facebook Before Year-End: WSJ

FTC Plans Antitrust Lawsuit Against Facebook Before Year-End: WSJ

The United States Federal Trade Commission could unveil an antitrust lawsuit against Facebook Inc. (NASDAQ: FB) by the end of the year, the Wall Street Journal reported Tuesday.

What Happened: The FTC has been looking into the social media platform for over a year.

Some of the regulator’s efforts to obtain more information include collecting CEO Mark Zuckerberg’s testimony on the company’s policies and practices.

The decision to go forth with the lawsuit will be finally made by a five-member bench comprising of three Republicans and two Democrats, according to the Journal.

Speculations suggest that the regulatory probe might look into the social media giant’s past acquisitions and takeover bids for competing businesses.

Why Does It Matter: The FTC’s clampdown against big tech companies is gradually gaining momentum.The regulator's scrutiny into Facebook’s business practices began in June last year. Additionally, the regulator also holds the authority to nullify previously approved mergers and acquisitions.

Facebook’s strategy of buying out smaller tech companies and incorporating their tech features in their own platform, including WhatsApp and Instagram, has been at the center of controveries for a long time.

The social media giant bought Instagram in 2012 for $1 billion and Whatsapp for $19 billion in 2014.

Price Movement: After a 2.36% uptick at the end of Tuesday’s trading hours, FB stock dipped 1.6% at $272.42 in the extended trading session.


Related Articles (FB)

View Comments and Join the Discussion!

Posted-In: Antitrust FTCGovernment News Regulations Legal Tech Media Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at