On June 28, a U.S. District Court dismissed an antitrust case filed against Facebook by the Federal Trade Commission (FTC) and 46 states. Filed in December, the complaint argues that the company unfairly maintains a social networking monopoly through its acquisition of Instagram, Whatsapp, and anti-competitive conduct.
The complaint was dismissed on the grounds that the government’s case was “legally insufficient,” but opened a 30-day window for the case to be amended. The news led Facebook’s stock to rise 4.2%, bringing the company’s value above $1 trillion for the first time and putting it in the ranks of Apple, Amazon, Microsoft, Saudi Aramco, and Google.
Facebook acquired Instagram in April 2012 for $1 billion. After a four-month review, the FTC voted 5–0 in approval of the merger. The lawsuit claims Facebook’s acquisitions and tactics have allowed the company to rub out the competition and left consumers with limited choices. If successful, the permanent injunction could require Facebook to divest Instagram and Whatsapp.