Ohio Suing Facebook, Accuses Company Of Being Monopoly

COLUMBUS, OH — Ohio is joining a multi-state lawsuit accusing Facebook of being a monopoly.

The lawsuit accuses Facebook of acquiring competitors and cutting services to smaller firms to maintain its grip over social media. The lawsuit was signed by Ohio Attorney General Dave Yost and 48 other attorneys general.

“Facebook’s unchecked power has grabbed an alarming level of control over what we see, say, buy and even who our friends are,” Yost said in a statement. “It is a dangerous seduction where we, as consumers, have become the product for Facebook by controlling so many aspects of our lives.”

Facebook leaders have denied any wrongdoing and have accused the attorneys general of "revisionist history."

"The most important fact in this case, which the Commission does not mention in its 53-page complaint, is that it cleared these acquisitions years ago. The government now wants a do-over, sending a chilling warning to American business that no sale is ever final," said Jennifer Newstead, Facebook vice president and general counsel.

The company's full statement is at the bottom of this article.

The lawsuit specifically accuses Facebook of buying up smaller rival before they could threaten the company's dominance. Yost's office also said Facebook founder Mark Zuckerberg would go into "destroy mode" if a business encroached on Facebook's monopoly.

In particular the suit focuses on three acquisitions that plaintiffs argue allowed Facebook to build its illegal monopoly:

• The purchase of photo app Instagram in 2012.
• The purchase of data analytics company Onovo in 2013, which they say Facebook put to work identifying potential threats to Facebook's monopoly for elimination.
• The purchase of messaging service WhatsApp in 2014.

The attorneys general are asking courts to block Facebook from acquiring any companies valued at $10 million or more, to block the company's anti-competitive behavior, and provide additional relief as needed.

The lawsuit against Facebook is headed by New York Attorney General Letitia James and an executive committee made up of the attorneys general of California, Colorado, Florida, Iowa, Nebraska, North Carolina, Ohio, Tennessee and the District of Columbia.

Here's Facebook's full statement:

“This is revisionist history. Antitrust laws exist to protect consumers and promote innovation, not to punish successful businesses. Instagram and WhatsApp became the incredible products they are today because Facebook invested billions of dollars, and years of innovation and expertise, to develop new features and better experiences for the millions who enjoy those products. The most important fact in this case, which the Commission does not mention in its 53-page complaint, is that it cleared these acquisitions years ago. The government now wants a do-over, sending a chilling warning to American business that no sale is ever final. People and small businesses don’t choose to use Facebook’s free services and advertising because they have to, they use them because our apps and services deliver the most value. We are going to vigorously defend people’s ability to continue making that choice.” - Jennifer Newstead, Vice President and General Counsel, Facebook