Back in November 2008, a venture-backed startup called Power Ventures launched Power.com in an effort to establish a one-stop shop social networking hub, enabling its users to aggregate and access data and activity streams from a variety of social networking sites via one single user interface.
Although both parties tried to reach a swift settlement, which ultimately didn’t materialize, Power.com a little over a year ago filed a countersuit against Facebook, basically alleging that the company was monopolistic and engaged in unfair competition practices.
Nuh uh, a California court has now ruled.
The relevant court documents – embedded below – are filled with legalese which admittedly makes it hard for non-lawyers to interpret the ruling to great detail, but the key take-away is that the court has found that Facebook’s conduct in this case was not in any way monopolistic of nature, nor anticompetitive.
Here are the relevant bits from the docs (emphasis ours):
The Court finds that Defendants’ allegations cannot support a Section 2 monopolization claim. Defendants cite no authority for the proposition that Facebook is somehow obligated to allow third-party websites unfettered access to its own website simply because some other third-party websites grant that privilege to Facebook. In fact, the Ninth Circuit has held that merely introducing a product that is not technologically interoperable with competing products is not violative of Section 2.
Accordingly, the Court GRANTS Facebook’s Motion to Dismiss Defendants’ counterclaims for violations of Section 2 of the Sherman Act. Since Defendants have already had the opportunity to amend their counterclaims once, the Court dismisses these claims with prejudice.
Facebook moves to dismiss Defendants’ UCL (California Unfair Competition Law) claim on the ground that if Facebook’s conduct is not anticompetitive under Section 2 of the Sherman Act, a UCL claim cannot be premised on that same conduct. Here, the Court has found that Facebook’s conduct is not anticompetitive. Thus, Defendants cannot premise their UCL claim on Facebook’s conduct under either the unlawful or the unfair prong. Accordingly, the Court GRANTS Facebook’s Motion to Dismiss as to Defendants’ UCL counterclaim with prejudice.
Facebook, of course, applauds the ruling. A spokesperson for the company tells us:
We are pleased the court rejected Power’s fundamental claim—antitrust violation—and upheld our right to protect our users’ data and enforce the privacy decisions they make on Facebook.
We’ve reached out to Power Ventures and chief executive Steve Vachani for their take on the ruling but have not heard back yet.
Update: looks like Power.com has a new CEO, Rob Pollock, who appears to be the only one on this planet to regard this as a victory for Power Ventures:
Update 2: Actually, two people on the planet. Vachani contacted me separately and said:
Today’s ruling dismissing Facebook’s legal claims against Power.com was a victory not only for Power.com, but for more than 1 billion Internet users worldwide to take ownership and control of their own data. With Facebook’s erroneous claims against Power.com being dismissed by the court today, this means that user’s are now empowered to decide who and how to access their own data on Facebook and across the Internet without Facebook attempts to criminalize their own users.
See? Everybody won – you too.
Update 3: see this EFF post for more information on the ruling.
Facebook is the world’s largest social network, with over 1 billion monthly active users. Facebook was founded by Mark Zuckerberg in February 2004, initially as an exclusive network for Harvard students. It was a huge hit: in 2 weeks, half of the schools in the Boston area began demanding a Facebook network. Zuckerberg immediately recruited his friends Dustin Moskovitz, Chris Hughes, and Eduardo Saverin to help build Facebook, and within four months, Facebook added 30 more college networks. The original...
Power.com launched in August 2008 for Orkut users and publicly in November 2008. The service lets users log into multiple social networks simultaneously. It also lets users move content from one network to another easily, and contact people across all of their social networks. The company was involved in a lawsuit with Facebook, in which Facebook accused Power.com of violating CAN-SPAM Act. In April 2011, Power.com shut down its service.