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
Day 2. A few comments after 2nd day of testimony from Mark Zuckerberg. FTC began with impeachment as Zuckerberg had said yesterday friends & family were only about 25% of Stories shared when instead it appears more in 63-73% range. I would hammer him on these, it's a pattern. /1
Remember, we've learned from MZ's deposition to SEC and many trips to Congress, he may say too much and seems to talk his way through problems. Speaking of... USvGoogle on the weight of contemporaneous statements is already a massive shadow over MZ. /2
I think MZ has a tell. He often says, "Well that is an interesting question" when asked about his prior contemporaneous statements on fairly obvious questions such as "Is it true that Facebook users like less ads in their feeds?" /3
with FTC's opening statement slides (109 of them over 86 minutes IYKYK)) now posting, I want to flag just a few of them worth amplifying. /1
These two statements from Judge Boasberg his denial of Meta's motion to dismiss last November will weigh heavily on Facebook imho. The evidence from both the Instagram deal and WhatsApp deal are damning considering just these two bullets. /2
This slide (and the next one) were interesting in getting internal reflections of Meta/Facebook forcing more ads into the Instagram experience. /3
FTC v Meta Day 1. Opening arguments for FTC laid out its case. As predicted, Meta tried to blow hole into market definition. This actually comes later in trial so not dwelling but will add some context at end. But first witness 1 was CEO Zuckerberg. Dead to rights on conduct. /1
Internal Facebook employee messages (some we've previously seen plus plenty more) make the Instagram deal clearly anticompetitive conduct imho. Exhibits may not post until Wed so my quotes are my best snapshots from messages in exhibits on screens. Relay with care. I tried. /2
Zuckerberg has testified for only 3 hrs of FTC's estimated 7hrs so he's back on stand tomorrow at 9:30am ET (remember, Careless People book said he hates mornings). FTC has been systematically laying out timeline of Facebook shift to mobile and acquisition of Instagram. /3
As Meta’s Andy Stone works overnight criticizing whistleblower testimony today on their role in China, let’s not forget Meta worked furiously thru billions in settlements to keep sealed it provided data access to 86,961 developers in China unsealed after court sanctions in 2023.
That slide is from their own internal audit. The one they promised the public and Congress in testimony then buried it including fighting to keep the forensic clean up artists aka auditors under seal, too, until an attorney said it in open courtroom. storage.courtlistener.com/recap/gov.usco…
Here is Stone’s statement this morning. He has a track record burying for his bosses so just think it’s important context when he tries to brush aside China. Thank you @HawleyMO for accountability here. nbcnews.com/tech/social-me…
Pretrial orders starting to give taste as to why WSJ reports Mark Zuckerberg is meeting Pres. Trump desperately trying to settle its FTC lawsuit 11 days from trial. Court just ordered Meta to release all internal discussions of "integrity" issues up until 2020. That's toxic. /1
Also included is evidence as to what appears to be Apple warning Facebook/Meta to address CSAM on WhatsApp chat groups. Remember, advertisers built this company investing hundreds of billions of dollars to support it. /2
On that note, we will also likely see the financials for WhatsApp which was acquired by Facebook for nearly $19B despite almost no revenues. The why this happened will be a key argument in the court room. /3
The American values of IP protection have been a cornerstone in the country’s innovative spirit and competitive edge over foreign adversaries. DCN focused on strong copyright protections in our comments filed for the AI Action Plan. Will share some thoughts here. /1
Weakening copyright protections, whether at home or abroad, threatens US economic growth and the global competitiveness. Importantly, this point is inclusive of content creators across all platforms. The invented "right to learn" by machines is BS spin from OpenAI and Google. /2
Simply put, AI firms must not use copyrighted content without consent or compensation, as this undermines fair competition and creator rights. And they should be required to disclose when they've used it without consent. /3