A group of U.S. states led by New York is investigating Facebook (FB) – Get Report for potential antitrust violations, with plans to file a lawsuit against the social media giant.
Citing four sources familiar with the situation, Reuters reported that more than 40 states are behind the lawsuit, which is expected to be filed as soon as next week.
Facebook and other tech giants including Amazon.com (AMZN) – Get Report, Apple (AAPL) – Get Report and Alphabet-owned Google (GOOGL) – Get Report have been accused of using their size and reach to direct consumers to their own products and services, stifling competition in the process.
Specifically, federal and state antitrust authorities are probing whether Facebook is taking advantage of its size and platforms in search and advertising practices – in particular through third-party platforms it owns like Instagram and WhatsApp.