Looks like the Federal Trade Commission's opposition to Facebook's attempt to dismiss their case to break the company into bits for anticompetitive behavior was just filed. Night reading...
this summary of amended complaint's metrics to establish market power is a reminder how absurdly Facebook's lobby tried to argue FTC hadn't backed up their monopoly claim. Having been around a few digital media businesses for 25+yrs, these are valid metrics to move forward. /2
oh, and there's that not-so-minor point, too. the competition used the same metrics. /3
Yes, Facebook argued Daily Active Users and Monthly Active Users didn't measure intensity and then ignored the 3rd metric (Time Spent) which very much measures intensity because according to FB not 100% of the app usage was personal social networking services. Seriously. /4
those who have been around long enough to know the history of comscore (or the company formerly known as MediaMetrix) may enjoy this point to the courts. Amen. Just give us the data, please. /5
Damnit, Mark. As our autocratic CEO, you can't entirely undermine our attempt to create a legal argument to protect you. /6
Raise your hand if you've been unsatisfied with Facebook and Mark Zuckerberg's products.✋🏽/7
There they go again - facebook employees serving up the evidence to entirely undermine our legal arguments. This is why Google reportedly sent out a list of rules of what not to say in writing. /7
I've yet to find anyone to argue with me that the world, and I mean the entire world, would be different if Facebook and Instagram would have had to actually compete with each other over the last five years. /8
side note, little known but we learned through leak documents that this "enforcer" on the legal side was Monika Bickert - years before she pivoted into being Sheryl and Mark's trusted lieutenant on policing content and defending the company in front of lawmakers and on CNN. /9
I mean it doesn't read well - they weaponized their app platform and access to their data by restricting any other app from competing with them in exchange for access while at the same time not letting any app integrated with a competitive personal social network. /10
Zuckerberg and Sandberg have pulled the football on the industry so many times it isn't funny. The word of the company has zero value - I have too many examples to count. /11
I may know someone who signed a multimillion dollar deal for access to those APIs then was cut off from them going forward. I bet we all do. /12
If I were God for a day, I would just restrict Facebook from collecting any/all data from outside and across each of its respective apps (if they're not split up in this case) as the German Cartel Office has ordered. It's a reasonable remedy for their data abuses. /13
It seems like with the $5 billion pay-off and ***second*** consent decree with the Federal Trade Commission, the regulator may be now taking a hint about the moral bankruptcy of the company. /14
Ha, and there it is. Exactly to my last tweet, the Federal Trade Commission says the quiet part out loud, "no one trust you, Facebook. Your word is 'meaningless.'" /15
And glad FTC made this argument regarding the Chair. Imagine if having an adverse opinion of Facebook Inc actually disqualified people from prosecuting a case against Facebook, there would be no lawyer left standing. /16
Here is a link to my thread on the full amended FTC complaint. My abbreviated analysis of tonight's filing is this case is moving forward regardless of the spin Facebook fed through its lobby and influencer-flex when it was originally filed. /eof
Justice takes time. What he knew when. AOC will remember this, “Their lawsuit says Zuckerberg—facing the risk of personal liability over the data privacy scandal—got himself out of trouble by agreeing to pay a larger-than-necessary $5 billion fine with shareholder money.” 1/3
Here is the full report from Bloomberg on Zuckerberg’s deposition which apparently was cut short and late on docs on Dec 3rd. Board members Thiel, Andreessen, others all being deposed these weeks. Press allowed Facebook to rewrite history on this. 2/3 news.bloomberglaw.com/business-and-p…
Here is a good thread that will get you into the details. Sheryl Sandberg also deposed although her assumed prior SEC deposition was sealed. We did finally get Zuckerberg’s which showed his nerves and that the scandal was on his mind much earlier. Thanks to @zamaan_qureshi 3/3
Overnight: FTC plans to call CEO Zuckerberg and (former) CTO Schroepfer in first 2 wks of trial (late April) in DC seeking to break up the company for abuse of monopoly laws. Also on their short list are some very big roles and names. Very likely driving behaviors at the top. /1
As I know their roles...
Chris Cox - chief product officer who took a break when scandals accelerated, and avoided testimony in UK.
Javier Olivan - now COO, key lieutenant
Sheryl Sandberg - former COO, on everything
Alex Schultz - key growth hacker, now CMO /2
Adam Mosseri - key lieutenant, now runs Insta
Dave Wehner - former CFO, deal approval including $19B with no real revenue WhatsApp
Fidji Simo - (former) always in mix, product leadership
Guy Rosen - Onavo alleged packet sniffing of WhatsApp, Snap /3
Woah. Google filed redacted versions of its Summary Judgment exhibits in Texas adtech antitrust case ahead of the March 31 trial. Although this case mirrors DOJ's case awaiting decision, it has even more eye-popping evidence. And an expert suggesting $29B in penalties. /1
"Project Bernanke" is an oldie but goodie that gets a lot of discussion. ICYMI, Google would allegedly increase the first highest and the second highest bid in its 2nd-price auctions then reinvest the "saved" funds back into other bids to Google wins more auctions. /2
The problem is while it may have ended up providing more revenue to the publisher (from/through Google) and no doubt to Google, Inc, it allegedly ignored the revenue which could have come through another channel if Google didn't manipulate the rev share as it ran the auctions. /3
US v Google II Closing arguments today.
70min for DOJ-> 95min for Google-> 20min for DOJ. Having predicted this case as better odds than search case (Google already lost in August), nothing changed my mind today. I wrote down: influence/$, complexity, deception, and arrogance. /1
I'm staying high level on perception first as findings of fact already covered much. On influence/$, DOJ pointed out early on and then again in rebuttal that every single witness presented by Google (except one) was paid or had grants from Google. /2
On complexity, Google again executed on its spaghetti defense with lead counsel, Karen Dunn, bookending trial by running over as she did in her opening. She appeared to skip dozens of slides, many minutes of close. And she loaded her slides while talking twice as fast as DOJ! /3
Bam. There is it. US Department of Justice has filed - requesting divestiture of Chrome as a remedy for court's finding against Google. Android at risk, too. /1
As it relates to Android, here is how DOJ puts it. Forced divestiture is option that "swiftly, efficiently, and decisively strikes at the locus of some anticompetitive conduct at issue here" but we're ok with tight behavioral remedies with option to divest if they don't work. /2
Revenue sharing for search default and/or preferential treatment - dead. Google's tens of billions to Apple - dead (last I saw it's about 15% of Apple's profits). Reminder, this all needs to be argued and approved by Court and then will get appealed. Still far off. /3
KA-BOOM. So when Google and its proxies (see so-called Chamber of Progress), friendly academics and analysts continue to suggest Chrome has nothing to do with the case, please ask them how many days they were at the trial. 1/3
This is super important. It’s an area @DCNorg (premium publishers) are intensely interested and concerned they get right around ability to restrict. The Court and trial made it clear they understood its importance during trial. We’ll be reading closely on Wednesday. 2/3
Here is the full report from Bloomberg who consistent with the entire trial showed up every day, did the hard work, and now got the massive scoop ahead of Wed filing. 3/3 bloomberg.com/news/articles/…