The judge notes two problems (at least!):
(1.) the FTC approved the purchase of Instagram and WhatsApp. Why does it want to change its mind?
(2.) they don’t even attempt a serious market definition. If Facebook is a monopoly, what is it monopolizing? Who else is in the market? This is an absolutely central question in any monopolization or horizontal merger case. Indeed, getting the judge to accept your theory of the market is a big part of the job.
The economics staff at the FTC is not incompetent (I know several people there), but they have a tough job in this case. If it has been up to me I would not have allowed the Instagram and WhatsApp purchases, but the FTC itself approved them!
Perhaps they did know the case wouldn't have a chance. Perhaps there isn't a plan to follow up with the actual complaint. It's not like the federal government has seriously pursued anti-trust activity in recent decades.
I agree that if they brought the case they should have had an argument, but it's less clear that they should have brought the case, or that size was an issue.
Maybe their plan was to lose to destabilize any later lawsuit which would have had a reasonable chance of winning?
Never attribute to malice that which can be adequately explained by stupidity.
Regardless, this still wouldn’t break Hanlon’s Razor because when you have enough information to adequately explain corruption so devious that it has been intentionally dressed as stupidity, it is rarely explained adequately with mere stupidity.
A lot of maybes, but I do wonder if the wheels of government are still recovering and whether the consequences of this are sometimes indirect and not so obvious. Bad management can leave waves.
TBH if I worked in public services over the last few year I'd probably feel pretty under-appreciated and it would be hard to motivate myself.
Misunderstandings and lethargy perhaps produce more wrong in the world than deceit and malice do. At least the latter two are certainly rarer.
through I also think we might need to better differentiate between content platforms with social aspect (YouTube, TickTock), Social Networks (Facebook, Instagram?) and Messengers (WhatsApp, Signal, etc.).
Negative way of looking at it: Virtue signaling/needing to appear to do something/campaign donation solicitation
> The FTC has failed to plead enough facts to plausibly establish a necessary element of all of its Section 2 claims — namely, that Facebook has monopoly power in the market for Personal Social Networking (PSN) Services. The Complaint contains nothing on that score save the naked allegation that the company has had and still has a “dominant share of th[at] market (in excess of 60%).” Redacted Compl., ¶ 64. Such an unsupported assertion might (barely) suffice in a Section 2 case involving a more traditional goods market, in which the Court could reasonably infer that market share was measured by revenue, units sold, or some other typical metric. But this case involves no ordinary or intuitive market. Rather, PSN services are free to use, and the exact metes and bounds of what even constitutes a PSN service — i.e., which features of a company’s mobile app or website are included in that definition and which are excluded — are hardly crystal clear. In this unusual context, the FTC’s inability to offer any indication of the metric(s) or method(s) it used to calculate Facebook’s market share renders its vague “60%-plus” assertion too speculative and conclusory to go forward. Because this defect could conceivably be overcome by re-pleading, however, the Court will dismiss only the Complaint, not the case, and will do so without prejudice to allow Plaintiff to file an amended Complaint.
Not sure what the FTC's game plan was going into an antitrust fight without a market share pitch.