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.
A few hundred pages of internal Google docs just posted from discovery in a privacy lawsuit. some serious self-reflection clearly happening the last few years. For example, read this section. /1
"Three years to kill cookies" ... "we make lots of money from ads - that sounds like selling data to many people." /2
In fact, even Google's own employees state Google making money through its data practices if "effectively selling your data." Google must hate seeing this ack in an internal document. /3
Facebook is having a rough 2022 - latest just hit docket - Judge and special master have ordered FB to turn over discovery on its massive audit ("ADI") of its apps for data leaks. 6k+ docs many with FTI Consulting and Stroz Friedberg (firms whose involvement it tried to seal). /1
Both FTI and Stroz are redacted in this filing but came out in press reports, hearings and parallel filings in other lawsuits. Now FB has to turn over all ADI docs unless primary purpose was legal advise (emails only to/fro FB or Gibson Dunn lawyers given this benefit). /2
We know from the parallel DC case Facebook tried to withhold from discovery communications involving over 4,200 employees of Facebook so, like, this could be A LOTTA uncomfortable discovery. /3
Google's privacy suit alleging it improperly synced Chrome browsing information with the mothership is getting interesting. Plaintiffs alleged late Friday Google instructed its independent auditor (E&Y) to withhold 6,232 (98%) of responsive discovery docs. /1
This all went down after E&Y had been served a subpoena a few months ago seeking the docs and the court ordered them to comply with it on a number of the requests. /2
Plaintiffs allege they first went to Google to get it resolved but didn't get any sufficient answer in terms of why it was requesting the 6,200+ docs to be withheld. /3
I sense no one is reading this so I choose a screenshot but this is the antithesis of reality. Good competition policy (and enforcement, hello EU) actually supports data protection. The idea improved privacy hurts competition is a disingenuous myth invented by adtech lobby. 1/4
Imagine writing a piece like this with misleading economic forecasting (that the revenue evaporates) while ignoring history that no privacy laws led to a duopoly of two companies capturing nearly all of the growth due to their tracking of users. 2/4
Many of the references are to industry friendly blogs and academic that don’t hold up. Facebook’s decline (more coming) due to kneecapping of its surveillance is leading to welfare reallocation to others with trusted consumer relationships. 3/4
"Advertising is critical to making quality news and information available to the public. Pulling advertising from timely, serious reporting is short-sighted in every respect." - @NewsCEO@newsalliancebusinessinsider.com/advertisers-ar…
Pls don’t take a one-size-fits-all approach of blocking keywords in order to avoid ads appearing on low-integrity sites like Sputnik and RT. These choices that treat all sites as interchangeable commodities have broader effects on a free and plural press delivering trusted info.
Incoming. Fun thread. You may remember my live tweeting a Feb 10th hearing where Facebook and its lawyers received arguably its greatest court beatdown ever for discovery on its Cambridge Analytica cover-up. Transcript just posted in parallel DC suit as evidence. It holds up. /1
Recall Facebook's lawyers (Gibson Dunn) were ordered to bring a "decision maker" from Facebook -> Solanki. "I'll chat with you in a minute." Court then invited plaintiffs to file for sanctions of FB and the partners at Gibson Dunn. Read every word (yellow is mine). It's good. /2
First, the Court goes through a couple examples (app developer investigation and turning over plaintiffs' data) that he describes as "egregious." You can read the invitation for sanctions and see if I was exaggerating the beatdown or not. Again, it's a gem - entertaining. /3