5 ms·

If the FTC did file prematurely for political reasons they should've known that the case didn't have a chance. I hope they kept working behind the scenes on a w

If the FTC did file prematurely for political reasons they should've known that the case didn't have a chance. I hope they kept working behind the scenes on a well-formed one. Maybe that was the original plan, rush in with a case to please the Trump administration then follow up with the actual complaint once they finish it. Then again, this may be wishful thinking. Incompetence is a much simpler explanation.

einpoklum 5y ago
> If the FTC did file prematurely for political reasons they should've known that the case didn't have a chance. Perhaps they did know the case wouldn't have a chance. Perhaps there isn't a plan to follow up with the actual complaint. It's not like the federal government has seriously pursued anti-trust activity in recent decades.
- sonotathrowaway 5y ago
  It’d be weird that the preeminent anti-trust academic just accepted a position as the head of the FTC with bipartisan if they didn’t intend to pursue antitrust. It’d be weird to offer it, and a bad decision she chose to accept it.
  - asdfasgasdgasdg 5y ago
    Just because she is an antitrust academic doesn't mean she automatically believes there is a winnable lawsuit here. If she doesn't think she's likely to win, perhaps she might choose not to follow through on the lawsuit.
huitzitziltzin 5y ago
FTC decisions are made by a majority vote of the commissioners. No more than three can be of the same party. It is unlikely this case was filed early for political reasons. The judge notes two problems (at least!): (1.) the FTC approved the purchase of Instagram and WhatsApp. Why does it want to change its mind? (2.) they don’t even attempt a serious market definition. If Facebook is a monopoly, what is it monopolizing? Who else is in the market? This is an absolutely central question in any monopolization or horizontal merger case. Indeed, getting the judge to accept your theory of the market is a big part of the job. The economics staff at the FTC is not incompetent (I know several people there), but they have a tough job in this case. If it has been up to me I would not have allowed the Instagram and WhatsApp purchases, but the FTC itself approved them!
- ummonk 5y ago
  Well regarding point 1), Facebook made promises during the acquisition process that it subsequently broke.
  - yalok 5y ago
    were those promises made to FTC specifically?
    - ummonk 5y ago
      Yes, to get approval for the acquisitions, Facebook made certain promises to the FTC.
      - chii 5y ago
        Which were?
        danvayn 5y ago
        here's the letter the FTC sent to facebook about whatsapp. https://www.ftc.gov/system/files/documents/public_statements/297701/140410facebookwhatappltr.pdf https://www.ftc.gov/system/files/documents/public_statements... I have no clue about IG dealings but wouldn't be surprised if they predated monopoly concerns
    - tremon 5y ago
      And were those promises formalized in a contract somewhere?

einpoklum 5y ago

> If the FTC did file prematurely for political reasons they should've known that the case didn't have a chance. Perhaps they did know the case wouldn't have a chance. Perhaps there isn't a plan to follow up with the actual complaint. It's not like the federal government has seriously pursued anti-trust activity in recent decades.

sonotathrowaway 5y ago
It’d be weird that the preeminent anti-trust academic just accepted a position as the head of the FTC with bipartisan if they didn’t intend to pursue antitrust. It’d be weird to offer it, and a bad decision she chose to accept it.
- asdfasgasdgasdg 5y ago
  Just because she is an antitrust academic doesn't mean she automatically believes there is a winnable lawsuit here. If she doesn't think she's likely to win, perhaps she might choose not to follow through on the lawsuit.

huitzitziltzin 5y ago

FTC decisions are made by a majority vote of the commissioners. No more than three can be of the same party. It is unlikely this case was filed early for political reasons. The judge notes two problems (at least!): (1.) the FTC approved the purchase of Instagram and WhatsApp. Why does it want to change its mind? (2.) they don’t even attempt a serious market definition. If Facebook is a monopoly, what is it monopolizing? Who else is in the market? This is an absolutely central question in any monopolization or horizontal merger case. Indeed, getting the judge to accept your theory of the market is a big part of the job. The economics staff at the FTC is not incompetent (I know several people there), but they have a tough job in this case. If it has been up to me I would not have allowed the Instagram and WhatsApp purchases, but the FTC itself approved them!

ummonk 5y ago
Well regarding point 1), Facebook made promises during the acquisition process that it subsequently broke.
- yalok 5y ago
  were those promises made to FTC specifically?
  - ummonk 5y ago
    Yes, to get approval for the acquisitions, Facebook made certain promises to the FTC.
    - chii 5y ago
      Which were?
      - danvayn 5y ago
        here's the letter the FTC sent to facebook about whatsapp. https://www.ftc.gov/system/files/documents/public_statements/297701/140410facebookwhatappltr.pdf https://www.ftc.gov/system/files/documents/public_statements... I have no clue about IG dealings but wouldn't be surprised if they predated monopoly concerns
  - tremon 5y ago
    And were those promises formalized in a contract somewhere?