U.S. District Judge James Boasberg in Washington, D.C., said the Federal Trade Commission didn’t prove that Facebook represents a monopoly in the social networking space.
“Although the court does not agree with all of Facebook’s contentions here, it ultimately concurs that the agency’s complaint is legally insufficient and must therefore be dismissed,” Boasberg wrote, according to Bloomberg.
The suit was filed by the U.S. Federal Trade Commission and state attorneys general led by New York’s Letitia James.
Boasberg said the FTC can refile the complaint within 30 days.
Facebook rose about 4% after the ruling. It has soared 33% over the past six months amid investor enthusiasm over its financial performance.
“With the ruling, Facebook has escaped -- at least for now -- the most significant regulatory threat to its business to emerge out of the wider crackdown on U.S. technology giants,” Bloomberg Law reported.
Now the attention may shift to antitrust legislation approved by the House Judiciary Committee last week to curb the dominance of tech giants Facebook, Alphabet, (GOOGL) - Get Free Report, Amazon (AMZN) - Get Free Report and Apple (AAPL) - Get Free Report.
TheStreet.com founder Jim Cramer offered an updated analysis of Facebook last week.
“Facebook has been such a tough stock to own,” he said. “But we've gotten through to the other side. And now seems like smooth sailing. Actually wish I had more, but we can't buy it up here.”
Facebook is a holding in Jim Cramer's Action Alerts PLUS member club.