FTC Accuses Facebook of Using 'Buy-or-Bury' Techniques to Stifle Competition and 'Hone a Surveillance-Based Advertising Model'

The United States Federal Trade Commission today reinforced its antitrust case against Facebook by providing more detail on how the company either crushed or bought out its rivals in an attempt to get rid of competition.

Facebook Feature
The updated filing is longer than the original complaint and it offers additional evidence in favor of the FTC's argument that Facebook is a monopolist, plus it again asks the judge overseeing the case to force Facebook to sell Instagram and WhatsApp, the two social networking apps that Facebook also operates.

In the complaint, the FTC says that Facebook used an illegal "buy-or-bury" scheme to maintain its dominance in the social networking market after it failed to "develop innovative mobile features" during the transition from desktop to mobile devices. Facebook is also accused of luring developers to its platform, surveilling them for signs of success, and then burying them when they became a threat.

With no "serious competition," the FTC says that Facebook has been able to "hone a surveillance-based advertising model" that causes increasing harm to consumers.

"Facebook lacked the business acumen and technical talent to survive the transition to mobile. After failing to compete with new innovators, Facebook illegally bought or buried them when their popularity became an existential threat," said Holly Vedova, FTC Bureau of Competition Acting Director. "This conduct is no less anticompetitive than if Facebook had bribed emerging app competitors not to compete. The antitrust laws were enacted to prevent precisely this type of illegal activity by monopolists. Facebook's actions have suppressed innovation and product quality improvements. And they have degraded the social network experience, subjecting users to lower levels of privacy and data protections and more intrusive ads. The FTC's action today seeks to put an end to this illegal activity and restore competition for the benefit of Americans and honest businesses alike."

According to the FTC, Facebook was unable to integrate its desktop-based technology to mobile devices, and when it was unable to fairly compete, Facebook executives addressed the threat by buying up new innovators in the space like Instagram and WhatsApp, who had "succeeded where Facebook failed."

Facebook's policies of hindering third-party developers on its Facebook Platform impacted companies like Circle and Path, and also "deprived consumers of promising and disrupting mavericks" that would have been able to force Facebook to make improvements to its own social network.

The FTC says that its amended complaint provides direct evidence that Facebook has the power to control prices, drive competitors out of business, and reduce the quality of the product delivered to consumers without losing a significant number of users.

The FTC originally filed an antitrust lawsuit against Facebook in December 2020, teaming up with 46 states, the District of Columbia, and the territory of Guam to accuse Facebook of maintaining an illegal social networking monopoly.

Popular Stories

iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro to Reverse iPhone X Design Decision

Monday July 7, 2025 9:46 am PDT by
Since the iPhone X in 2017, all of Apple's highest-end iPhone models have featured either stainless steel or titanium frames, but it has now been rumored that this design decision will be coming to an end with the iPhone 17 Pro models later this year. In a post on Chinese social media platform Weibo today, the account Instant Digital said that the iPhone 17 Pro models will have an aluminum...
iOS 26 Feature

Everything New in iOS 26 Beta 3

Monday July 7, 2025 1:20 pm PDT by
Apple is continuing to refine and update iOS 26, and beta three features smaller changes than we saw in beta 2, plus further tweaks to the Liquid Glass design. Apple is gearing up for the next phase of beta testing, and the company has promised that a public beta is set to come out in July. Transparency In some apps like Apple Music, Podcasts, and the App Store, Apple has toned down the...
imac video apple feature

Apple Launching These 15+ Products Later This Year

Sunday July 6, 2025 8:05 am PDT by
The calendar has turned to July, meaning that 2025 is now more than half over. And while the summer months are often quiet for Apple, the company still has more than a dozen products coming later this year, according to rumors. Below, we have outlined at least 15 new Apple products that are expected to launch later this year, along with key rumored features for each. iPhone 17 Series iPho...
iphone 16 pro models 1

Here's How the iPhone 17 Pro Max Will Compare to the iPhone 17 Pro

Saturday July 5, 2025 1:00 pm PDT by
Apple should unveil the iPhone 17 series in September, and there might be one bigger difference between the Pro and Pro Max models this year. As always, the Pro Max model will be larger than the Pro model:iPhone 17 Pro: 6.3-inch display iPhone 17 Pro Max: 6.9-inch displayGiven the Pro Max is physically larger than the Pro, it has more internal space, allowing for a larger battery and...
iPhone Car Key Kia

Here's Which Vehicles Offer iPhone Car Keys

Sunday July 6, 2025 3:03 pm PDT by
In 2020, Apple added a digital car key feature to its Wallet app, allowing users to lock, unlock, and start a compatible vehicle with an iPhone or Apple Watch. The feature is currently offered by select automakers, including Audi, BMW, Hyundai, Kia, Genesis, Mercedes-Benz, Volvo, and a handful of others, and it is set to expand further. Apple has a web page with a list of vehicle models that ...
iphone 17 pro render majin bu

New iPhone 17 Pro Renders Highlight Apple Logo and MagSafe Design Changes

Sunday July 6, 2025 8:43 pm PDT by
New renders today provide the best look yet relocated Apple logo and redesigned MagSafe magnet array of the iPhone 17 Pro and iPhone 17 Pro Max. Image via Majin Bu. Several of the design changes coming to the iPhone 17 Pro model have been rumored for some time, such as the elongated camera bump that spans the full width of the device, with the LiDAR Scanner and flash moving to the right side. ...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 14 New Features

Friday July 4, 2025 1:05 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are just over two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:Apple logo repositioned: Apple's logo may have a lower position on the back of the iPhone 17 Pro models, compared to previous...
apple account card feature

Apple Account Card Expanding to More Countries

Tuesday July 8, 2025 7:34 pm PDT by
Apple is expanding the ability to add an Apple Account Card to the Wallet app to more countries, according to backend Apple Pay changes. With iOS 15.5, Apple updated the Wallet app to allow users to add an Apple Account Card, which displays the Apple credit balance associated with an Apple ID. If you receive an Apple gift card, for example, it is added to an Apple Account that is also...
iPhone 14 Pro Dynamic Island

iPhone 17 Models Rumored to Feature Redesigned Dynamic Island

Monday July 7, 2025 7:38 am PDT by
iPhone 17 models will feature a redesigned Dynamic Island user interface, according to a post today from Digital Chat Station, an account with more than three million followers on Chinese social media platform Weibo. The account has accurately leaked some information regarding future Apple products in the past. The account did not share any specific details about the alleged changes that are ...

Top Rated Comments

_Spinn_ Avatar
51 months ago
Facebook is absolutely a monopoly. It is scary that 1 company owns 4 of the top 5 social media/chat platforms: Facebook, WhatsApp, Facebook Messenger, and Instagram. If any company needs to have antitrust brought down on them it is Facebook.

https://www.statista.com/statistics/272014/global-social-networks-ranked-by-number-of-users/
Score: 17 Votes (Like | Disagree)
alex00100 Avatar
51 months ago
It won’t be long until same lawsuit are files against Microsoft, Apple and the rest.
Score: 7 Votes (Like | Disagree)
TheYayAreaLiving ?️ Avatar
51 months ago
Ha! Sounds like these big companies are after the small fish. Killing the competition.

Facebook is always playing it dirty. Unethical business model.

I hope Facebook gets fined and they actually get to pay for it this time around.
Score: 7 Votes (Like | Disagree)
rgeneral Avatar
51 months ago
Break up the Face and leave it as a book.
Score: 6 Votes (Like | Disagree)
robjulo Avatar
51 months ago

Ha! Sounds like these big companies are after the small fish. Killing the competition.

Facebook is always playing it dirty. Unethical business model.

Pay the fine, Facebook.
As is Apple.
Score: 5 Votes (Like | Disagree)
ghanwani Avatar
51 months ago

Facebook is absolutely a monopoly. It is scary that 1 company owns 4 of the top 5 social media/chat platforms: Facebook, WhatsApp, Facebook Messenger, and Instagram. If any company needs to have antitrust brought down on them it is Facebook.
Our economy is full of monopolies. If you think anything is going to change, I have a bridge to sell you. You can tell by what happened to $FB on this news. It yawned.
Score: 5 Votes (Like | Disagree)