The social media giant Meta, formerly Facebook, secured a legal victory after a federal appeals court dismissed an antitrust lawsuit filed by several U.S. states seeking to break up the company, citing a lack of proof that the firm's data policies damaged competition.
The court dismissed the suit, which was initially filed in 2020 by New York and dozens of other states, saying it was filed too late and failed to make a persuasive case that the company's data policies harmed competition, according to a CNN Business report. The original complaint sought to unwind Meta's past acquisitions of Instagram and WhatsApp, accusing the company of violating antitrust laws.
“An injunction breaking up Facebook, ordering it to divest itself of Instagram and WhatsApp under court supervision, would have severe consequences, consequences that would not have existed if the States had timely brought their suit and prevailed,” Senior Circuit Judge Raymond Randolph said in an April 27 statement.
If successful, the lawsuit would have had severe consequences, including forcing Meta to divest itself of Instagram and WhatsApp under court supervision, according to CNN Business.
"The States thus have not adequately alleged that this policy substantially foreclosed Facebook's competitors, giving us an additional reason to reject their exclusive dealing theory," the court said in the statement.
According to CNN Business, the ruling is a blow to regulators who have cited Meta as a prime example of tech giants allegedly abusing their dominance. The decision casts a shadow over a parallel antitrust case against Meta brought by the Federal Trade Commission around the same time.
The ruling is a significant victory for Meta, which has been under increased scrutiny from regulators and lawmakers in recent years, CNN Business reported.
The ruling in favor of Meta highlights the challenges of pursuing antitrust cases against tech giants. These cases often involve complex legal and technical issues, making them difficult to prove. The outcome of this case will likely have implications for future antitrust cases against tech companies, CNN Business reported.
