U.S. authorities and more than 45 state attorneys have sued Facebook after accusing the firm of using 'illegal strategies' to buy rival companies and restrict competition.
The lawsuit filed by the Federal Trade Commission (FTC) and 45 states focuses on Facebook purchases over Instagram, WhatsApp and laws regarding software developers.
U.S. authorities claim Facebook is using a ‘buy or bury’ approach to potential competitors, affecting competitors and users who have lost control over their own data to support the firm’s advertising revenue.
"For nearly a decade, Facebook has been using its monopoly influence and power to destroy smaller competitors and kill competition at the expense of consumers on a daily basis," said New York Attorney General Letitia James, who is leading the lawsuit.
U.S. authorities are asking the court to consider imposing heavy penalties on social media firms.
However, Facebook said the agreement made with other companies was approved by the US authorities a few years ago.
"The government now wants a change, a stern warning to American businesses that any sale transaction is final," Jennifer Jennifer Lawstead told Facebook.
He added that Facebook has invested millions of dollars to make Instagram and WhatsApp successful and will defend the company vigorously.
"Antimonopoly laws exist to protect consumers and promote innovation, not to punish successful businesses," Facebook said in a statement.
