Facebook probe in final stages as FTC, dozens of US states prepare to sue social media giant
- As many as 41 states, led by New York, may sign on to join the Federal Trade Commission in suing Facebook, sources say
- Facebook has been accused of stifling competition with Instagram acquisition, weakening WhatsApp’s privacy protections and selectively squashing rivals
FTC staff undertaking a probe of the company has recommended to commissioners that they sue the social media company in federal court, which would allow the group of states, led by New York, to join the lawsuit, according to one source.
As many as 41 states may sign on to the lawsuit, three sources said. The filing of the lawsuit or lawsuits could slip into next year, the sources said.
Following news reports on the Facebook investigation, New York Attorney General Letitia James said in a statement: “We don’t comment on the details of an ongoing investigation, but as we have said before, we will continue to use every investigative tool at our disposal to determine whether Facebook’s actions stifled competition, reduced choices, or put user data at risk.”
The FTC and states have yet to finalise how they might file any lawsuits. The FTC may file alone to a district court while the states file their complaint separately; the FTC can file to an administrative law judge and states can file in district court, or they can join forces and sue together in district court, two sources said.
States discussed the matter during a call on Wednesday, two sources said.