Jim Cramer Questions What FTC Is Trying to Prove With Reported Facebook Suit

Katherine Ross

The Federal Trade Commission is reportedly readying a possible antitrust case against Facebook.

The agency has spent more than a year investigating Facebook on antitrust grounds, but no final decision has been reached on whether to sue the company, the WSJ reported. The probe of Facebook is part of a broader investigation of market-leading Internet firms initiated by the FTC and a collection of other state and federal offices.

Sources told the Wall Street Journal that the FTC interviewed Facebook CEO Mark Zuckerberg in the course of the investigation and that charges could be filed by the end of this year. The lawsuit needs to pass muster with the FTC's five-member commission, which will vote on whether or not to file charges.

Past reports suggested that investigators were honing in on Facebook's long track record of copying, or acquiring, smaller apps that were perceived as a threat to the social media giant.

At a recent House Judiciary hearing focused on antitrust issues, lawmakers produced emails from Zuckerberg in which he discussed possible acquisition offers of Instagram and Path, a location-based social app.

In one, Zuckerberg fretted about competitive upstarts like Instagram and Path, writing: "the businesses are nascent but ... they could be very disruptive to us." 

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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Comments (6)
No. 1-6
Pb6466
Pb6466

I’m not sure that buying a potential competitor is illegal. Most big companies do it consistently. No one forced Instagram owners to sell. Feds approved the sale. Many times, start-ups look for an exit strategy and shop their businesses to the big boys. Unless Facebook coerced a sale or stole intellectual property, leave them alone & let the market decide.

kperkins2
kperkins2

Facebook always has something going against the company. "They never want to see you great" 😂

jeehoyun
jeehoyun

I really hope Facebook doesnt go down in the dumps after this, probably not honestly though

Emmanwo8
Emmanwo8

hopefully, Facebook bounces back from this

KareemWinters
KareemWinters

hopefully the stock continues to push up

AlexM5
AlexM5

I hope FTC files the suit!