UPDATED 16:01 EST / OCTOBER 22 2019

POLICY

38 more attorneys general join multistate antitrust probe of Facebook

Facebook Inc.’s stock fell more than 4% today after New York State Attorney Letitia James, who is leading an antitrust probe into the company, revealed that 38 more attorneys general will take part in the investigation.

The group joins the eight states that originally backed the probe when it launched last month. The coalition also includes the attorney generals of the District of Columbia and Guam, plus multiple unnamed states that currently aren’t disclosing their participation. That means nearly every state and territory in the U.S. is now looking into Facebook’s business conduct.

“Our investigation now has the support of 47 attorneys general from around the nation, who are all concerned that Facebook may have put consumer data at risk, reduced the quality of consumers’ choices, and increased the price of advertising,” James said in a statement. ”As we continue our investigation, we will use every investigative tool at our disposal to determine whether Facebook’s actions stifled competition and put users at risk.”

Will Castleberry, Facebook’s vice president of state and local policy, said that the company “will work constructively with state attorneys general and we welcome a conversation with policymakers about the competitive environment in which we operate.” 

Facebook’s handling of user privacy has been a particularly big source of scrutiny for the social network. This year, it  paid a $5 billion fine to settle a Federal Trade Commission into the Cambridge Analytica scandal, which saw millions of users’ data harvested without their consent. 

The FTC is conducting its own antitrust probe into Facebook separately from the attorneys general. So is the Justice Department, which is pursuing a broader review of tech giants’ business practices that focuses not only on Facebook but also Apple Inc., Amazon.com Inc. and Google LLC. And the House Judiciary Committee recently requested internal documents from the four firms in connection with a Congressional competition investigation.

Facebook is facing pressure on other fronts as well. Last week, a federal judge allowed a group of users to proceed with a class action lawsuit that seeks damages over the data harvesting done by Cambridge Analytica and other third parties. Two weeks before that, the European Union’s highest court issued a controversial decision requiring the social network to globally remove content deemed illegal by member states. 

Photo: Eston Bond/Flickr

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