Keller Lenkner & Quinn Emanuel File Antitrust Class-Action Lawsuit Against Facebook

Lawsuit Alleges the Company Illegally Obtained a Monopoly by Exploiting User Data & Deceiving Consumers About Data Privacy

National plaintiffs’ law firm Keller Lenkner LLC and global business litigation firm Quinn Emanuel Urquhart & Sullivan, LLP filed a class-action lawsuit against Facebook, Inc. alleging violations of federal antitrust laws and California law on behalf of Facebook users.

 Filed in the U.S. District Court for the Northern District of California, the complaint alleges that Facebook obtained and maintained a social network and social media monopoly by consistently deceiving consumers about the data-privacy protections it provided to users, and by exploiting the data it extracted from users to target smaller startup companies for destruction or acquisition.

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Facebook Antitrust Lawsuit Alleges Illegally-Obtained Monopoly, User Data Exploitation & Consumer Data Privacy Deceit

The lawsuit seeks to put an end to Facebook’s misrepresentations about its privacy practices and its anticompetitive acquisition conduct; to require Facebook to engage in third-party auditing of its conduct; and to require Facebook to divest assets, such as Instagram and WhatsApp, that entrench its market power.

“It is illegal for Big Tech companies like Facebook to acquire a monopoly by deceiving consumers about the data they harvest and make available to third parties, like Cambridge Analytica,” Keller Lenkner Partner Warren Postman said. “This lawsuit is being filed not just to stop Facebook’s deceptions about its lax data privacy protections, but also to stop Facebook from continuing to entrench its monopoly by using valuable consumer data to identify smaller competitors and target them for acquisition or destruction.”

According to the complaint, which was filed on behalf of named plaintiffs Sarah Grabert and Maximilian Klein, Facebook did not achieve its Big Tech monopoly through innovation or vigorous competition. Despite its public pledge to protect user privacy, Facebook lied to users and violated their trust in a scheme to build a technology empire. Facebook also acquired technology from smaller firms that it used to track consumer activity across the internet so that it could identify and target competitors.

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The complaint further alleges that in a strategic, intentional ploy for market domination, Facebook engaged in its scheme to destroy all competition without a care for the ultimate harm it would inflict on consumers. By the time Facebook’s deception about its lackluster privacy protections became public knowledge, Facebook had already achieved dominance, making it difficult for any firm to challenge its social media and social network monopoly.

“If consumers had known the truth about Facebook’s false claims about user data privacy, they never would have given Facebook access to their personal information,” Quinn Emanuel Partner Stephen Swedlow said. “Facebook promised users stringent privacy protections, but then cheated its way to market dominance. By the time Facebook’s deception first came to light in 2018, Facebook was already capable of using its behemoth status as a weapon to destroy smaller competitors.”

The complaint notes that Facebook derives enormous economic value from the data it harvests from consumers on its platform. In fact, Facebook itself has described how it generates massive earnings per user from the data it collects. The complaint details how Facebook’s destruction of competition has caused consumers substantial economic injury. Consumers who sign up for Facebook agree to give up their valuable data and attention in exchange for using Facebook’s platform. That information and attention is then sold in measurable units to advertisers in exchange for money. The complaint alleges that consumers were harmed by Facebook’s anticompetitive conduct, as they did not receive the benefit of their b****** with Facebook.

The lawsuit includes claims for violations of federal antitrust laws and California common law. It also seeks an order enjoining Facebook from continuing to engage in the alleged wrongful acts, requiring Facebook to engage third-party auditors to evaluate and correct problems with Facebook’s conduct, and requiring Facebook to divest assets like Instagram and WhatsApp. The lawsuit also seeks monetary damages, restitution and/or disgorgement of Facebook’s wrongful gains, attorneys’ fees, and costs. 

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