Edited by: JV Staff
New York Attorney General Letitia James on Tuesday released the following statement confirming the bipartisan coalition she’s leading investigating social media giant Facebook for antitrust issues:
“Even the largest social media platform in the world must follow the law and respect consumers. I am proud to be leading a bipartisan coalition of attorneys general in investigating whether Facebook has stifled competition and put users at risk. We will use every investigative tool at our disposal to determine whether Facebook’s actions may have endangered consumer data, reduced the quality of consumers’ choices, or increased the price of advertising.”
Joining Attorney General James on the leadership team investigating Facebook are the attorneys general of Colorado, Florida, Iowa, Nebraska, North Carolina, Ohio, Tennessee, and the District of Columbia. The investigation focuses on Facebook’s dominance in the industry and the potential anticompetitive conduct stemming from that dominance.
AG James added that 47 attorneys general from other states and US territories have plans to participate in a New York-led antitrust probe into Facebook. According to a CNBC report, shares of FB plummeted to 3.9%.
CNBC reported that the multistate investigation was announced in September with participation from seven other states, but it has since expanded to nearly the entire country. The probe will zero in on whether Facebook broke any state or federal laws as a result of any anti-competitive conduct related to its dominance of social media.
“After continued bipartisan conversations with attorneys general from around the country, today I am announcing that we have vastly expanded the list of states, districts, and territories investigating Facebook for potential antitrust violations,” James said in a statement. “Our investigation now has the support of 47 attorneys general from around the nation, who are all concerned that Facebook may have put consumer data at risk, reduced the quality of consumers’ choices, and increased the price of advertising. As we continue our investigation, we will use every investigative tool at our disposal to determine whether Facebook’s actions stifled competition and put users at risk.”
Facebook already faces a separate antitrust investigation launched by the Federal Trade Commission in July. The probe was announced on the heels of the FTC’s $5 billion fine against Facebook over its privacy policies, according to the CNBC report.
CNBC reported that Facebook and its rivals, including Google, Amazon and Apple, also face a separate probe from the U.S. Department of Justice. The probe, which opened in July, seeks to examine whether online platforms that dominate internet search, social media and retail services have “stifled innovation.”
