Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
News

The FTC’s antitrust suit aims to break up Facebook

This article is a preview of The Logic’s Daily Briefing newsletter, sent every weekday. Sign up for a free trial.

The Federal Trade Commission (FTC) and a coalition of 48 state and territory attorneys general have filed two separate lawsuits against Facebook, alleging the social media giant has abused its dominance to snap up rival companies and, in the process, stifle competition, harm innovation and degrade user experience. 

News

The FTC’s antitrust suit aims to break up Facebook

By Catherine McIntyre
Facebook CEO Mark Zuckerberg testifies before a joint hearing of the Commerce and Judiciary Committees on Capitol Hill in Washington in April 2018. Photo: AP Photo/Alex Brandon
Dec 9, 2020
A A
A Small A Medium A Large
Share

Share

This article is a preview of The Logic’s Daily Briefing newsletter, sent every weekday. Sign up for a free trial.

The Federal Trade Commission (FTC) and a coalition of 48 state and territory attorneys general have filed two separate lawsuits against Facebook, alleging the social media giant has abused its dominance to snap up rival companies and, in the process, stifle competition, harm innovation and degrade user experience. 

The claims: Both suits take aim at Facebook’s acquisitions of Instagram and WhatsApp, deals made in 2012 and 2014, respectively. “After identifying two significant competitive threats to its dominant position—Instagram and WhatsApp—Facebook moved to squelch those threats by buying the companies, reflecting CEO Mark Zuckerberg’s view, expressed in a 2008 email, that ‘it is better to buy than compete,’” the FTC wrote in its suit. While the states have likewise singled out Instagram and WhatsApp, the commission goes a step further in seeking a permanent injunction that could see Facebook forced to sell those platforms. In a press conference on Wednesday, New York Attorney General Letitia James said, “Any efforts to stifle competition, hurt small business, reduce innovation and creativity, cut privacy protections will be met with the full force of our offices.”

The context: Facebook first revealed in July 2019 that it was under investigation by the FTC; the coalition of states announced its probe in September that year. The lawsuits add to a growing portfolio of antitrust challenges against the social media platform. EU regulators are investigating the firm over anti-competition concerns related to its trove of personal data and its sales platform; in July, Facebook sued the European Commission for seeking information about the company beyond what it deemed necessary. The company—along with Alphabet, Apple and Amazon—was also subject to questioning before the U.S. Congress in July over its online dominance. In a report following the hearings, Congress concluded that Facebook acted as a monopoly by employing a “copy, acquire, kill” approach to its competition. 

The reaction: Senator and former presidential candidate Elizabeth Warren, a staunch critic of tech companies’ dominance, was among policymakers on both sides of the aisle to applaud the legal action, tweeting, “There’s more work to do, but this is a big step in the fight to #BreakUpBigTech.” 

Facebook general counsel Jennifer Newstead called the suits “revisionist history.” Antitrust laws “exist to protect consumers and promote innovation, not to punish successful businesses,” she said in a statement. “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.” 

Facebook CEO Mark Zuckerberg previously told employees the company would fight any government efforts to break it up. “I don’t want to have a major lawsuit against our own government,” Zuckerberg said during an internal meeting in 2019. “But, look, at the end of the day, if someone’s going to try to threaten something that existential, you go to the mat and you fight.”

Taylor Owen, director of the Center for Media, Technology and Democracy at McGill University, told The Logic, “Any company under antitrust lawsuits from the Federal Trade Commission, and the attorneys general from 48 states investigating, should of course be worried.” However, Owen said that efforts to compel Facebook to unwind its Instagram and WhatsApp acquisitions could be difficult due to the company’s efforts to merge the backends of the three platforms. “If this suit were successful, consumers may ultimately benefit from more choice over how their social media platforms treat their personal data, moderate the content they are shown and how they engage in the digital economy.”

#Facebook #FTC

Sponsored Content

The real-world economic offshoots of sovereign AI

By Deborah Aarts
Illustration of a plane flying above a mailbox

Increasing healthcare access across Canada

By Deborah Aarts

What it takes to lead a frontier firm

By Deborah Aarts
Paid promotional content

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Photo: AP Photo/Alex Brandon

Most Popular This Week

An image of a man in a dark suit and purple tie standing and speaking at a microphone. The man has a serious facial expression. A blue banner that reads "Milken Institute" is in the background.
News

Investor demand is what’s bringing the Milken Institute to Canada

By Chaimae Chouiekh
Janice Charette and Dominic LeBlanc walking toward the camera next to a white pavilion that bears the logo of the 2026 G7 meeting in France.
News

Canada ‘can’t even talk about anything else’ if Trump makes good on latest tariff threat

By Joanna Smith
A man walks across a large greenhouse with large glass ceilings. He is walking on a white path through rows of green lettuce growing on the ground.
News

Canadian businesses were bracing for a wave of retirees. Then along came AI

By Anita Balakrishnan
An image of a man wearing a dark suit jacket and tie. He is wearing a mic and looking slightly away from the camera.
News

Brookfield and Cohere execs among high-profile guests at CVCA summit

By Catherine McIntyre

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

A shot of a construction worker seen through the door opening of a newly framed wall. The wall is being constructed in a factory setting.
News

‘Lego’ homes or housing solution? Canadians are split on modular housing

By Laura Osman

Briefing

Roots to go private in deal led by Marquee Brands

By Catherine McIntyre   |   Aug 21, 2026 | 3:31 PM ET

Negotiations once again down to the wire as tariff countdown ticks toward midnight

By Laura Osman   |   Aug 21, 2026 | 3:27 PM ET

Domtar shutters B.C. pulp mill over reduced demand and poor prices

By Laura Osman   |   Aug 21, 2026 | 2:57 PM ET

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

Commentary

Carmichael: Canada’s biggest companies aren’t wired for growth. That’s a problem for us all

By Kevin Carmichael   |   Aug 15, 2026
An image of the Canadian flag against two tall buildings with glass windows in the background.
Exclusive

Star researcher Sanja Fidler raises over US$90M for world model startup

By Murad Hemmadi   |   Aug 19, 2026
A woman wearing a ponytail and a black leather jacket stands on a stage. She looks slightly away from the camera. She wears a microphone and appears to be speaking to an audience.
News

Canada ‘can’t even talk about anything else’ if Trump makes good on latest tariff threat

By Joanna Smith   |   Aug 14, 2026
Janice Charette and Dominic LeBlanc walking toward the camera next to a white pavilion that bears the logo of the 2026 G7 meeting in France.
News

Anthropic wants to add ‘gigawatts’ of AI compute in Canada

By Murad Hemmadi   |   Aug 19, 2026
An image of a man with glasses, wearing a dark blue suit and light blue collared shirt. The man looks slightly away from the camera and a microphone is visible in the foreground. A blue background that reads World Economic Forum is visible in the background.
News

Negotiators work on fine print of deal that would spare Canada new U.S. tariffs

By Joanna Smith   |   Aug 19, 2026
A shot taken through a crowd of reporters and boom mics showing Mark Carney seated beside Donald Trump in yellow chairs in the Oval Office. Seated before them on sofas are senior members of the leaders' respecting cabinets.
News

U.S. private equity is buying Canada’s biggest payments processor. Some people are worried about sovereignty

By Claire Brownell   |   Aug 12, 2026
In this photo illustration the Moneris logo is seen displayed on a smartphone.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account