Bloomberg Law Meta on Trial & What Can Blue States Do?
Apr 16, 2025
Antitrust law expert Harry First from NYU discusses the groundbreaking trial against Meta, focusing on its potential monopolistic practices and the FTC's challenges. Retired judge Nancy Gertner shares insights on political biases affecting blue states, analyzing Trump's strategies and their implications. The conversation dives into the complex dynamics of Meta's advertising controversies, user engagements, and the legal ramifications that could reshape social media's landscape. They also tackle potential responses from blue states amidst claims of federal favoritism.
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Defining Facebook's Market Debate
- Defining Facebook's market is key to the FTC's case with debate whether platforms like YouTube and TikTok count as competitors.
- The FTC focuses on personal social networking services, which centers on friends and family connectivity, separate from broader entertainment services.
Monopoly Without Price: Quality Degradation
- The FTC argues Meta is a monopolist by market share and makes anti-competitive moves like degrading service via ad loads.
- With no price charged, monopoly harm is inferred through product quality degradation, such as privacy reduction and increased ads.
Zuckerberg's 'Neutralize Competitor' Email
- Internal emails reveal Zuckerberg's acquisition of Instagram was aimed at neutralizing competition rather than product improvement.
- This buy-or-bury strategy exemplifies anti-competitive behavior under scrutiny in the FTC's case.