Federal Judge Dismisses Sambreel Antitrust Case in Favor of Facebook

  • A federal judge has sided with Facebook against an adware company that attempted to use the site for its own purposes, ruling that the social network has the right to exclude users if they install a program designed to change the look of the site and swap ad offerings.
  • “In a ruling issued Thursday [November 29] in San Diego, U.S. District Judge Cathy Ann Bencivengo dismissed an antitrust complaint filed by Sambreel, a controversial advertising company that offers products with names like PageRage that let users tweak the look of their Facebook page,” reports GigaOM.
  • “The companies got in a bitter fight earlier this year after Facebook ‘gated’ users who had downloaded the Sambreel products — meaning the users had to remove PageRage software before they could log on to the social network,” notes the post.
  • In response, Sambreel launched an aggressive legal and PR campaign, accusing Facebook of violating antitrust laws.
  • However, according to Judge Bencivengo: “There is no fundamental right to use Facebook; users may only obtain a Facebook account upon agreement that they will comply with Facebook’s terms, which is unquestionably permissible under the antitrust laws. It follows, therefore, that Facebook is within its rights to require that its users disable certain products before using its website.”
  • “The ruling comes at a time of uncertainty over the degree to which large companies like Facebook, Google and Twitter can control their products,” notes GigaOM. “On one hand, these are private companies that provide a free service — meaning they should be able to do what they like. On the other hand, they have become like public utilities that people depend on for their communications and on which third party companies make their livelihood.”

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