Phhhoto vs. Meta Antitrust Lawsuit Revived
A U.S. appeals court has overturned a previous dismissal of an antitrust lawsuit against Meta by the defunct social media app Phhhoto. Phhhoto alleges Meta copied its core features, suppressed its content through algorithmic manipulation, and ultimately drove it out of business. The original dismissal was based on statute of limitations, but the appeals court ruled this was an error, giving Phhhoto another chance to argue its case. Similar antitrust concerns have been raised in other cases.
Key Allegations
- Algorithmic Suppression: Phhhoto claims Meta's algorithm feed on Instagram was manipulated to prioritize Meta's content over Phhhoto's, hindering its growth. This was allegedly discovered through a test using different accounts posting the same content, with Phhhoto's account receiving significantly less engagement despite having a larger following.
- API Restrictions: Phhhoto alleges Meta revoked its access to the "Find Friends" API, limiting its ability to connect with users on Meta's platform. Simultaneously, plans to integrate Phhhoto's content into the Facebook News Feed were terminated.
- Feature Copying: The lawsuit claims Meta's Instagram Boomerang app directly copied Phhhoto's looping video technology.
Next Steps
The case will now return to the district court for trial. Meta maintains its stance that the lawsuit is baseless. The outcome of this case could have significant implications for how tech giants compete with smaller startups. For more on AI and its potential impact, see this article on AI-generated voices. Also, Apple is integrating AI into its products.