Facebook market cap tops US$1 trillion as antitrust lawsuit thrown out by US judge

Facebook Inc (NASDAQ:FB) has scored a victory in the ongoing legal battle over its market position after a US judge dismissed an antitrust complaint filed against the social media giant by the Federal Trade Commission (FTC).

Overnight, the judge ruled that the FTC had not provided sufficient evidence the prove that Facebook was a monopoly, however, the case itself was not dismissed meaning the regulator can refile another complaint if it chooses to do so.

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The FTC originally filed the case in December last year alongside a coalition of 48 US states, all of which accused Facebook of using its market power to squash competitors.

One of the remedies sought by the coalition includes forcing the company to spin out its instant messaging platform WhatsApp as well as image sharing platform Instagram, which were acquired by Facebook in 2014 and 2012 respectively.

The ruling sent shares in the firm surging in Tuesday’s session on Wall Street, with Facebook shares 4.2% higher at US$355.64 at the closing bell, taking its market cap above US$1 trillion for the first time.

However, Facebook is also facing more regulatory pressure on the other side of the Atlantic, with both UK and EU watchdogs having opened market abuse investigations into the firm earlier this month.

The case may also spur US lawmakers to pass new legislation aimed at overhauling existing antitrust laws that is currently making its way to the House of Representatives.

Story by ProactiveInvestors