TOTM
Network Effects in FTC v Meta
Truth on the Market
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The Federal Trade Commission’s (FTC) ongoing antitrust case against Meta has brought network effects into the spotlight, as the agency’s complaint and opening statement both lean heavily on networks as a source of competitive harm.
But the commission’s arguments fundamentally misunderstand how network effects interact with competition in digital markets. Far from being solely anticompetitive moats, network effects create nuanced competitive dynamics that the FTC fails to acknowledge.