JPB Liberty’s Class-Action Against Facebook: No Case.

JPB Liberty vs Facebook

(first published July 3, 2019)

Every once in a while that story that blurs the line between serious talk and humor pops up. Earlier this week, my attention was drawn towards JPB Liberty’s class action against Facebook, Google, and Twitter. You’re about to find out why JPB Liberty are especially out for Facebook. Let’s be clear. I’ve not been a fan of Facebook in a minute (since after college I believe). If there were any embers of affection left to be fanned, the Cambridge Analytical scandal of last year effectively quenched it. When I first heard about JPB Liberty’s case I thought maybe this was it — karma finally came for Facebook. But upon reading the finer details of the case I was rattled. Nothing could have prepared me for this level of absurdity.

Here’s The Gist.

JPB Liberty is suing Facebook and others for billions for banning and discrediting cryptocurrency and related advertisement on its platform. What’s more, JPB Liberty is filled with ‘righteous’ indignation over Facebook’s hypocrisy in developing its own cryptocurrency (Libra) while denying other similar projects access to Facebook ads and potentially raise billions in startup funding. Oh, the nerve of them!

My initial reaction was: ‘Is this a joke?’ Once I got past my initial disbelief, it was time to get critical. Did Facebook play dirty? They did like all tech giants do in one form or another. Facebook has the right to manage its platform the way it deems fit. Think of it like a physical shop you own. You have every right (maybe not legal rights) not to list goods of potential competitors for whatever reasons you want to cook up. Dirty? You bet. But is that grounds for a lawsuit? JPB Liberty is in effect asking failed ICOs and other blockchains/crypto projects to join their misguided cause and blame Facebook for their misfortunes. This theory assumes Facebook’s ban on the ads was self-serving. But for all we know, Facebook could have been acting in its users’ best interests. It’s easy to make that argument.

Even with Facebook ads out of the picture, investors lost billions from ICO scams. Imagine how much more would have been lost had Facebook not moved (albeit uncharacteristically) to protect its users. No doubt the ban further sustained public disbelief around all things cryptocurrency. But make no mistake about it, the argument that Facebook is some kind of arbiter of right and wrong that should be held accountable for misleading the public into blacklisting cryptocurrency is pure baloney. Since when did Facebook become a research tool?

That’s one interpretation of the situation. Andrew Hamilton, CEO of JPB Liberty has another. He says,

‘The 3 biggest online advertising players can’t get together to block competitor access to online advertising. Its [sic] blatantly anti-competitive and there are laws against this’.

I have to admit he’s not wrong. There are indeed antitrust laws. It’s easy to forget as cases involving violation of antitrust law rarely see daylight. Still, antitrust laws are important as they can be applied to a wide range of questionable business activities including market allocation, bid rigging, and monopoly. Some popular examples: United States vs. Microsoft Corp (see here); United States vs. Paramount picture Inc (see here); United States vs. Apple Inc. (see here). Recently the subject is back in the news with Senator Elizabeth Warren’s proposal to dismantle tech giants like Facebook and Google. The existence of antitrust laws is not the question. Rather can it be enforced in this particular case? Have the tech giants abused their power in banning crypto ads considering the surge of unregulated blockchain projects turn scams and bad investments? My answer is a resounding NO to both questions. In fact, by purging its platform of potentially fraudulent schemes, Facebook was also protecting itself against lawsuits of this nature.

As a crypto enthusiast and bitcoin crusader, I can understand the damage the ban caused legitimate blockchain/crypto projects but interpreting this as grounds for class action borders on a deluded sense of entitlement. Facebook owes these projects nothing. Now that JPB Liberty has set the stage, several failed crypto projects will now come out of the woodwork to blame Facebook for their badly executed projects.

I’m all for breaking up the hegemony of technological giants but this class action is not the way to go. This case is a joke. If you don’t think so go ahead and join the class action lawsuit at https://www.jpbliberty.com

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