Meta Faces Revived Antitrust Lawsuit Over Alleged Anti-Competitive Practices
A U.S. appeals court has reinstated an antitrust lawsuit against Meta, filed by the now-defunct social media app Phhhoto. The lawsuit alleges that Meta engaged in anti-competitive practices, including copying Phhhoto’s core features and suppressing competition.
Background of the Lawsuit
Phhhoto filed the lawsuit in 2021, claiming that Meta’s actions led to a decline in user registrations and engagement. The lawsuit specifically points to Meta’s introduction of an algorithmic feed on Instagram, which allegedly suppressed Phhhoto’s content.
The district court initially dismissed the lawsuit due to statute of limitations. However, the appeals court has overturned this decision, ruling that the case should be heard.
Key Allegations Against Meta
Phhhoto alleges that Meta engaged in several anti-competitive practices, including:
– Copying Phhhoto’s core features
– Suppressing competition through algorithmic manipulation
– Withdrawing access to the “Find Friends” API
– Terminating plans to integrate Phhhoto’s content into the Facebook News Feed
Impact of the Lawsuit
The reinstatement of the lawsuit marks a significant development in the ongoing debate over Big Tech’s anti-competitive practices. The case has implications for the broader tech industry, highlighting the need for greater transparency and accountability in the development and deployment of algorithms.
Conclusion
The revived antitrust lawsuit against Meta serves as a reminder of the importance of promoting competition and innovation in the tech industry. As the case moves forward, it will be closely watched by industry observers and policymakers alike.
