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U.S. NEWS Thursday 10 december 2020
US govt, states sue Facebook for 'predatory' conduct

By MARCY GORDON and that it saw as a threat. The
MICHAEL R. SISAK Associ- lawsuit — which includes
ated Press 46 states, Guam and the
WASHINGTON (AP) — Fed- District of Columbia — ac-
eral regulators on Wednes- cuses Facebook of anti-
day sued to force a competitive conduct and
breakup of Facebook as using its market dominance
48 states and districts ac- to harvest consumer data
cused the company in a and reap a fortune in ad-
separate lawsuit of abusing vertising revenues.
its market power in social "For years, Facebook has
networking to crush smaller used its monopoly power as
competitors. a social networking website
The antitrust lawsuits were to stifle competition and in-
announced by the Fed- novation and to sell alarm-
eral Trade Commission and ing amounts of user data to
New York Attorney General make money, all at the ex-
Letitia James. The FTC spe- pense of the many people
cifically asked a court to who use its platform," North
force Facebook sell off its Carolina Attorney General
Instagram and WhatsApp Josh Stein, who was on the
messaging services. executive committee of at-
"It's really critically impor- In this Aug. 6, 2020 file photo, New York State Attorney General Letitia James takes a question at torneys general conduct-
tant that we block this a news conference in New York. ing the investigation, said in
predatory acquisition of Associated Press a news release.
companies and that we James said the coalition
restore confidence to the oly power to crush smaller ernment actions "revisionist gressional antitrust probe. worked collaboratively
market," James said dur- rivals and snuff out compe- history" that punishes suc- Facebook is the world's with the FTC but noted the
ing a press conference an- tition, all at the expense of cessful businesses and not- biggest social network with attorneys general con-
nouncing the lawsuit. everyday users." ed that the FTC cleared the 2.7 billion users and a com- ducted their investigation
The FTC said Facebook has The FTC fined Facebook $5 Instagram and WhatsApp pany with a market value separately.
engaged in a "a systemat- billion in 2019 for privacy acquisitions years ago. "The of nearly $800 billion whose "Personal social network-
ic strategy" to eliminate its violations and instituted government now wants a CEO Mark Zuckerberg is the ing is central to the lives
competition, including by new oversight and restric- do-over, sending a chilling world's fifth-richest individu- of millions of Americans,"
purchasing smaller up-and- tions on its business. The fine warning to American busi- al and the most public face Ian Conner, director of the
coming rivals like Instagram was the largest the agency ness that no sale is ever of Big Tech swagger. FTC's Bureau of Competi-
in 2012 and WhatsApp in has ever levied on a tech final," Facebook general James alleged Facebook tion, said in a statement.
2014. company, although it had counsel Jennifer Newstead had a practice of open- "Facebook's actions to en-
James echoed that in her no visible impact on Face- said in a statement that ing its site to third-party app trench and maintain its mo-
press conference, saying book's business. echoed the company's developers, then abrupt- nopoly deny consumers the
Facebook "used its monop- Facebook called the gov- response to a recent con- ly cutting off developers benefits of competition. q
Michigan will borrow $600M for Flint water settlement

By DAVID EGGERT tributing to the $641 mil- Flint switched its drinking
LANSING, Mich. (AP) — lion deal include the city water source in 2014 from
Michigan lawmakers on of Flint and McLaren Flint Detroit's system to the Flint
Wednesday began swiftly Hospital, which each will River in a money-saving
passing a plan to borrow pay $20 million, and Rowe move while under super-
$600 million to fund the Professional Services Co., vision of a state financial
state's proposed settle- an environmental consult- manager. City workers fol-
ment with the residents of ing company that will pay lowed state environmen-
Flint, who sued after their $1.25 million. The House is tal officials' advice not to
municipal water supply expected to pass the bills use anti-corrosive addi-
was contaminated with el- next week and send them tives. Without those treat-
evated levels of lead for 18 to Gov. Gretchen Whitmer ments, water from the river
months. for her signature. scraped lead from aging
Under the bipartisan legis- "We all determined togeth- pipes and fixtures, contami-
lation that received unani- er that that was the quick- nating tap water.
mous Senate approval, est way to get the money Elevated levels of lead, a In this Jan. 18, 2016 file photo, water analysis test kits for Flint,
the loan from a state eco- to be available for the fam- neurotoxin, were detected Mich., residents to pick up for lead testing in their drinking water
are set out on a table at Flint Fire Department Station No. 1 as
nomic development fund ilies and to fulfill the settle- in children, and 12 people members of the U.S. Army National Guard 125th Infantry Battal-
would cost more than $1 ment requirements," said died in a Legionnaires' dis- ion wait to help residents.
billion to repay over 30 Senate Minority Leader Jim ease outbreak that experts Associated Press
years — $35 million annu- Ananich, a Flint Democrat suspect was linked to the
ally. It is believed to be the who is sponsoring one bill. improperly treated water. vice lines. in mid-January. The state
state government's larg- The mechanism, he said, Officials said this week that The state attorney gener- deal was first announced in
est-ever legal settlement, will avoid a large draw- Flint has taken important al's office said U.S. District August. Other defendants
pending approval from a down from Michigan's sav- steps toward resolving the Judge Judith Levy may rule joined in November, and
federal judge. ings account, known as the crisis, such as replacing on a motion for preliminary full details of the agree-
Other defendants con- "rainy day" fund. more than 9,700 lead ser- approval of the settlement ment were filed in court.q