Four tech firms sue Facebook for running a 'monopoly&ap…
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Four tech firms are suing Facebook for running a 'brazen' and 'anti-competitive scheme' which they say is the worst in a 'generation' and are demanding that Mark Zuckerberg give up his stake in the company.
The lawsuit was filed in San Francisco on Thursday by Cir.cl, Beehive Biometric, Reveal Chat and Lenddo. Cir.cl and Beehive Biometric are now defunct.
Cir.cl was an online marketplace and social media platform where users could exchange goods, sell and communicate.
Facebook now operates its own Marketplace function.
Beehive Biometric was an identity management website which used code to simplify facial recognition API.
Reveal Chat is a messaging service and Lenddo is a Singapore-based company which weighs up a person's online presence and smart phone records to determine their eligibility for financial loans.
The companies say Mark Zuckerberg should relinquish his 60 percent stake in the company
The companies complain that Facebook's ownership of Facebook Instagram and whatsapp api gateway and Zuckerberg's reported plans to integrate them signals unprecedented monopoly which will make it either impossible or expensive for consumers to walk away from in favor of other services down the line.
They are demanding that Zuckerberg give up his 60 percent stake in the company.
They also claim in their suit that Facebook revoked their developer access to its sites in order to stave off any competition.
'Facebook faced an existential threat from mobile apps, and while it could have responded by competing on the merits, it instead chose to use its might to intentionally eliminate its competition,' Yavar Bathaee, a partner at law firm Pierce Bainbridge and co-lead counsel in the case, said.
Their complaints are the latest in a series of calls of concern about Facebook's dominance in the tech and communications industries.
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The filing is an escalation of Facebook's battles with small app developers that had built companies based on access to its user data. Facebook cut off access for certain apps as far back as 2012, while still allowing access for others.
Thousands of pages of damaging internal emails have emerged from a similar lawsuit filed by Six4Three, the developer of a now-shuttered bikini photo app.
Facebook has described the Six4Three case as baseless.
Facebook did not immediately respond to a Reuters request for comment on the latest lawsuit.
The social network also faces multiple investigations into possible antitrust violations by regulators around the world.
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The lawsuit was filed in San Francisco on Thursday by Cir.cl, Beehive Biometric, Reveal Chat and Lenddo. Cir.cl and Beehive Biometric are now defunct.
Cir.cl was an online marketplace and social media platform where users could exchange goods, sell and communicate.
Facebook now operates its own Marketplace function.
Beehive Biometric was an identity management website which used code to simplify facial recognition API.
Reveal Chat is a messaging service and Lenddo is a Singapore-based company which weighs up a person's online presence and smart phone records to determine their eligibility for financial loans.
The companies say Mark Zuckerberg should relinquish his 60 percent stake in the company
The companies complain that Facebook's ownership of Facebook Instagram and whatsapp api gateway and Zuckerberg's reported plans to integrate them signals unprecedented monopoly which will make it either impossible or expensive for consumers to walk away from in favor of other services down the line.
They are demanding that Zuckerberg give up his 60 percent stake in the company.
They also claim in their suit that Facebook revoked their developer access to its sites in order to stave off any competition.
'Facebook faced an existential threat from mobile apps, and while it could have responded by competing on the merits, it instead chose to use its might to intentionally eliminate its competition,' Yavar Bathaee, a partner at law firm Pierce Bainbridge and co-lead counsel in the case, said.
Their complaints are the latest in a series of calls of concern about Facebook's dominance in the tech and communications industries.
RELATED ARTICLES
Share this article
Share
The filing is an escalation of Facebook's battles with small app developers that had built companies based on access to its user data. Facebook cut off access for certain apps as far back as 2012, while still allowing access for others.
Thousands of pages of damaging internal emails have emerged from a similar lawsuit filed by Six4Three, the developer of a now-shuttered bikini photo app.
Facebook has described the Six4Three case as baseless.
Facebook did not immediately respond to a Reuters request for comment on the latest lawsuit.
The social network also faces multiple investigations into possible antitrust violations by regulators around the world.
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