Facebook Hits $1 Trillion Market Cap After Antitrust Claims are Dismissed A federal judge says lawsuits against Facebook lacked support or came too late.

By Euni Han

Opinions expressed by Entrepreneur contributors are their own.

Frederic Legrand | Shutterstock

Judge James Boasberg of the U.S. District Court for the District of Columbia says the Federal Trade Commission "failed to plead enough facts to plausibly establish ... that Facebook (FB) has monopoly power in the market for Personal Social Networking (PSN) Services," according to CNN.

The FTC accused Facebook of holding a "60%-plus share" of the social media market and violating the country's anti-monopoly laws with a "buy or bury" strategy -- buying start-ups like Instagram to keep it from threatening Facebook's market dominance. The lawsuit also accuses Facebook of excluding other companies from its services.

Related: Criticism of Facebook rains after launching advertising in virtual reality video game

Boasberg also dismissed a similar lawsuit by dozens of state governments charging Facebook with anti-competitive practices through its acquisitions of Instagram and WhatsApp in 2012 and 2014, respectively. The judge, while saying Facebook may have violated antitrust laws, decided the lawsuits were filed too late to be relevant.

Facebook shares rallied on Monday after the announcement, climbing more than 4% and lifting the company's market value above the $1 trillion level for the first time.

The social media giant responded with a statement.

"We are pleased that today's decisions recognize the defects in the government complaints filed against Facebook," the company said.

Related: Facebook Launches Audio Podcasts

The judge, however, didn't dismiss the FTC's overall case against Facebook --- and a spokesperson says the agency is reviewing and planning its next steps.

However, Boasberg's decision did reignite calls on Capitol Hill to update U.S. antitrust laws. Representative Ken Buck, the leading Republican on the House Judiciary Committee, tweeted about the need to break up Big Tech:

"Today's development … shows that antitrust reform is urgently needed. Congress needs to provide additional tools and resources to our antitrust enforcers to go after Big Tech companies engaging in anticompetitive conduct."

The committee recently pushed forward several bills that would help FTC antitrust regulators and the Justice Department break up tech giants like Amazon, Apple, Facebook and Google.

Related: Uber, Facebook, Instagram and other apps that are slowly killing your smartphone

Wavy Line

Editor's Pick

She's Been Coding Since Age 7 and Presented Her Life-Saving App to Tim Cook Last Year. Now 17, She's on Track to Solve Even Bigger Problems.
Lock
I Helped Grow 4 Unicorns Over 10 Years That Generated $18 Billion in Online Revenues. Here's What I've Learned.
Lock
Want to Break Bad Habits and Supercharge Your Business? Use This Technique.
Lock
Don't Have Any Clients But Need Customer Testimonials? Follow These 3 Tricks To Boost Your Rep.
Why Are Some Wines More Expensive Than Others? A Top Winemaker Gives a Full-Bodied Explanation.

Related Topics

Living

5 Ways to Manage Your Mental Health and Regulate Your Nervous System for Sustainable Success

Your body and mind are the cornerstones of your success — are you taking care of yourself?

Legal

You Could Lose Your Entire Business in a Personal Injury Claim. Here's How to Protect Yourself

As the prevalence of personal injury lawsuits grows nationally, what does this mean for small business owners? How can you be proactive as a business owner, plan ahead for the potential of accidents, and create a safe work environment? Careful planning and training can go a long way.

Devices

Score a Refurbished, Grade-A iPad Mini and Free Headphones for Just $99.99

Take advantage of this amazing price just in time for summer.

Business News

3 Companies to Pay Over $1 Billion in Settlement Over 'Forever Chemicals' Allegedly Contaminating U.S. Water Systems

Polyfluoroalkyl substances, also known as PFAS, are nearly impossible to break down and can have serious consequences to human health and the environment.

Leadership

3 Mundane Tasks You Should Automate to Save Your Brain for the Big Stuff

Automation is one way to cut through the noise: daily check-ins, circle-backs, status updates, etc. — and leave mental space for the big stuff.