Jason Kint Profile picture
#HoldTheLine #PressFreedom CEO DCN. @dcnorg

Mar 9, 2022, 13 tweets

ok, incoming... Updated antitrust complaint vs Facebook just posted including 110 unsealed pages. This is the suit FB failed to dismiss - pinned to its bad data practices. Redlines are new, I'll hit on what I see as the key new allegations and discovery evidence (so far). /1

Most importantly, it adds three massive sections alleging anticompetitive behavior in three business critical categories of data (location, commerce, video) with three respective companies - Foursquare, eBay and Netflix - including conflicts of interests in the deals. /2

it also intros term "Data Targeting Barrier to Entry" as it systematically walks through how critically important surveillance is to Facebook. FB uses the term "signal" - this came up A LOT on last earnings call regarding privacy - leading to its $1/4 trillion drop in value. /3

Lawsuit alleges how Facebook announced new entries into each of three categories (Marketplace, Locations, Watch) and used FB's market threat to get more reciprocal data from the three companies. It notes Netflix CEO was also Chair of Governance and Compensation Cmte for FB. /4

In terms of reciprocity, it's long been reported Facebook whitelisted companies after it shut down its APIs based on business needs and data reciprocity but there is a significant amount of new allegations in the lawsuit regarding its Events API and "extended whitelisting." /5

Probably the most troubling of all is the new discovery on Onavo - the VPN software Facebook acquired - claiming "Facebook had built the largest real-time surveillance system in existence" - including allegations they could spy on content of messages and media. More on this... /6

Here is email from a FB executive explaining how sophisticated Onavo was for spying - reminder FTC and state AGs also allege Instagram and WhatsApp acquisitions were accelerated based on this spying. Also, a reminder Apple and Google had to boot FB's Onavo out of app stores. /7

This could be an entire thread: 1) alleges FB fed personal data from Onavo into Hive (its massive data repository now under discovery orders in another lawsuit), 2) Guy Rosen, who sold Onavo to FB, is "head of integrity" for FB. Think about the leadership making this decision. /8

Lastly, includes many unsealed pages on how merging of back-end of FB apps - an obvious attempt to hinder antitrust breakup - was pitched/bought in press using a smokescreen of encryption which should have been unrelated but would move public debate to security vs privacy. /9

Added to the back and unsealed are Sherman Section 1 allegations between Facebook and Netflix, eBay in addition to Google. Note, the allegations of Facebook and Google rigging market are also a significant part of this suit but not new so I'm skipping in this thread. /10

Here is the case. Document 244 which posted overnight is Facebook's motion to keep redacted certain info but includes both the Amended Complaint and a redlined version with again 110+ pages now unsealed. /11

And a reminder, these are plaintiff allegations. Although a lot of the complaint is on-brand and consistent with facts we've learned in other unsealed lawsuits, press reports and includes some apparently new discovery, we'll need to see how this plays out. Thanks. /eof

This is the previous thread on this lawsuit. Again, the most important new allegations would be Facebook striking deals with category leads to back off in markets (eg pro video where it was to invest $1B) in return for increasing barriers to entry on ad targeting and $ from it.

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