Facebook Antitrust Move Grows Larger After Attorneys General From 45 States Across US Join New York-Led Probe

A wide-ranging antitrust investigation initiated into the business practices of Facebook by the state of New York has become larger after more than 45 states in the US chose to join the probe.

More than US 45 states, including Guam and the District of Columbia, have begun to partner in a bipartisan investigation led by New York Attorney General Letitia James into whether the company’s business practices have stifled competition or put its customers at risk.

James, who’s leading the probe has released a statement that the investigation is aimed at finding out whether Facebook’s actions endangered user data, reduced the quality of consumers’ choices or increased the price of advertising, which happens to be the company’s main source of revenue.

According to the statement by New York Attorney General Letitia James, the investigation now has the support of 47 attorneys general from around the nation, “who are all concerned that Facebook may have put consumer data at risk, reduced the quality of consumers' choices, and increased the price of advertising”.

“We will use every investigative tool at our disposal to determine whether Facebook's actions stifled competition and put users at risk,” James said in a recent statement.

The investigation has been launched with support from attorneys general from eight states -- New York, Florida, Colorado, Iowa, Nebraska, North Carolina, Ohio, Tennessee and Washington DC.

“Social media is a critical part of doing business in today's economy. Any effort by Facebook to unlawfully stifle competition could cause wide-ranging harm to smaller companies, restrict consumer choice, and increase costs for all," said Connecticut Attorney General William Tong.

According to Delaware Attorney General Kathy Jennings, "We are investigating whether Facebook has broken the law through anti-competitive practices or other acts that harm consumers."

In a stern warning to tech giants, the US House Anti-Trust Committee has opened probes into Facebook, Google, Apple, Amazon and other tech giants to determine if they prevent competition and hurt consumers.

The investigation's core is the idea that “the Internet is broken”.

“Big Tech must account for its actions. I am proud to join my Republican and Democrat colleagues in efforts to ensure Tech Giants can no longer hide behind complexity and complicity,” said Louisiana Attorney General Jeff Landry.

Massachusetts Attorney General Maura Healey added, “It's important that the internet remains fair and open to everyone. We are participating with a broad coalition of states in an investigation of Facebook's business practices”.

A bipartisan coalition led by New York attorney general has launched an investigation into Facebook to understand whether it stifled competition and put users at risk.

“The District of Columbia has joined this investigation to ensure Facebook is giving a fair shake to district residents and the American people. No company gets a pass if it throttles competitors and exploits consumers," said District of Columbia Attorney General Karl A Racine.

The expansion of the probe is the latest sign that states are continuing to take aim at Big Tech, with a similar investigation led by Texas under way against Alphabet’s Google. The state probes target a wide range of practices that generate billions of dollars in revenue for the world’s biggest social-media company and the largest seller of search-based advertising.

Significantly, James who is leading the probe had hosted a meeting of policy experts to discuss the strengths and weaknesses of various antitrust legal theories involving Facebook’s acquisitions of Instagram and WhatsApp.

The meeting had also discussed privacy issues as well as the company’s power in the digital advertising market.