PHHHOTO Inc. v. Meta Platforms, Inc. et al
Case Summary
On November 4, 2021, Phhhoto Inc. (“Phhhoto” or “Plaintiff”), represented by Scott Allan Martin of Hausfeld LLP, filed an antitrust lawsuit against Meta Platforms, Inc. f/k/a Facebook, Inc. and Does Nos. 1-7, (“Defendants”), seeking declaratory relief with damages, costs and attorneys’ fees, for the alleged fraudulent and anticompetitive course of conduct by Defendant which reduced Phhhoto’s value both during its existence and in its ability to sell its assets when it was shut down. This case was filed in U.S. District Court in the Eastern District of New York with Judge Kiyo A. Matsumoto and Judge Roanne L. Mann presiding.
In the complaint, the Plaintiff alleged that, “By promoting interoperability between Facebook and Phhhoto, Facebook was able to engage users and collect data related to Phhhoto’s users, improve the quality of its services, and increase advertising revenue. After benefiting from the presence of Phhhoto’s users’ unique and compelling content on its platforms and gaining quantitative insight into Phhhoto’s market desirability, Facebook abused its monopoly power by withdrawing access to the critical infrastructure. This course of dealing created a profitable arrangement for Facebook, and there was no legitimate rationale for severing the course of dealing, which rather was intended to and did suppress competition.”
The Plaintiff further alleged that, “Facebook willfully maintained and enhanced its monopoly power through an anticompetitive and exclusionary course of conduct as alleged herein, including but not limited to cutting off Phhhoto’s access to critical APIs, revoking Phhhoto’s ability to use the iPhone hooks to prepopulate with #Phhhoto, fraudulently promising to integrate Phhhoto into the Facebook newsfeed but creating a clone of Phhhoto’s product instead, and suppressing Phhhoto’s users’ posts to the Instagram newsfeed.”
The Plaintiff also alleged that, “As a direct and proximate result of this unlawful conduct, Phhhoto was injured in its business and property by losing investment opportunities, having its advertising revenue diminished, and suffering the total loss of the value of the company.” “Facebook’s conduct has harmed and continues to harm competition in the market for personal social networking services, including by stifling innovation and investment, degrading quality, suppressing output, and depriving consumers of choice in the Personal Social Networking Services market in the United States.”
The Plaintiff lists out four claims for relief. The first claim alleged is for Unlawful Monopolization (Monopoly Maintenance) in the Personal Social Networking Services Market – Section 2 of the Sherman Act, 15 U.S.C. § 2. The second claim is for Fraud. The third claim is for violation of New York General Business Law §349 and the fourth claim is for Unfair Competition. The Plaintiff alleged that Facebook made misrepresentations of fact and material omissions to Phhhoto, including but not limited to, Facebook’s intention to integrate Phhhoto into the Facebook newsfeed, the reason for withdrawal of the ability to pre-populate hashtags through iPhone Hooks, the reasons for Facebook’s revocation of Phhhoto’s access to the Find Friends API, and the operation of and reason for implementation of the algorithmic newsfeed.
In its prayer for relief, the Plaintiff requested the Court for a judgment against Facebook with respect to the claims set forth herein and for monetary damages, including treble and/or punitive damages; expenses of litigation and costs of this action, including reasonable attorneys’ fees; and such other and further relief as the Court deems just and proper.
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Case Details
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Case Number:
1:21-CV-06159
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Filing Date:
11/04/2021
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Case Status:
Disposed - Other Disposed
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Case Type:
Other - Antitrust
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Court:
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Courthouse:
Judge Details
Presiding Judge
Kiyo A. Matsumoto
Referral Judge
Lois Bloom
Party Details
Plaintiff
PHHHOTO Inc.
Defendants
Meta Platforms, Inc.
DOES NOs. 1-7
Facebook, Inc.
Attorney/Law Firm Details
Plaintiff Attorneys
Michael D. Hausfeld
Gary L. Reback
Sarah Rebecca LaFreniere
Brittany Lee Nyovanie
Irving Scher
Scott Allan Martin
Defendant Attorneys
Aaron M Panner
Alex Treiger
Julius Taranto
Silvija Anna Strikis
Court Documents
(#36) NOTICE OF APPEAL as to #35 Clerk's Judgment, by PHHHOTO Inc.. Filing fee $ 505, receipt number ANYEDC-16651554. Appeal Record due by 5/15/2023. (Martin, Scott) (Entered: 05/01/2023)
(#35) CLERK'S JUDGMENT: ORDERED and ADJUDGED that Defendants' Motion to Dismiss in its entirety is granted; that Defendants' claims are dismissed with prejudice; and that leave to amend a second time is denied. Ordered by Jalitza Poveda, Deputy Clerk on behalf of Brenna B. Mahoney, Clerk of Court on 3/31/2023. (JT) (Entered: 03/31/2023)
(#34) ORDER granting #27 Motion to Dismiss. For the reasons set forth in the attached Memorandum and Order, the Court GRANTS Defendants' Motion to Dismiss in its entirety, Defendants' claims are DISMISSED with prejudice, and leave to amend a second time is DENIED. The Clerk of Court is respectfully directed to enter judgment in favor of Defendants and to close the case. Ordered by Judge Kiyo A. Matsumoto on 3/30/2023. (LW) (Entered: 03/30/2023)
(#33) RESPONSE in Opposition re #32 MOTION to Stay Discovery filed by PHHHOTO Inc.. (Martin, Scott) (Entered: 03/17/2023)
(#32) MOTION to Stay Discovery by Meta Platforms, Inc.. (Panner, Aaron) (Entered: 03/14/2023)
Memorandum in Support
(#34) ORDER granting #27 Motion to Dismiss. For the reasons set forth in the attached Memorandum and Order, the Court GRANTS Defendants' Motion to Dismiss in its entirety, Defendants' claims are DISMISSED with prejudice, and leave to amend a second time is DENIED. The Clerk of Court is respectfully directed to enter judgment in favor of Defendants and to close the case. Ordered by Judge Kiyo A. Matsumoto on 3/30/2023. (LW) (Entered: 03/30/2023)
Certificate of Good Standing
Affidavit
ORDER granting #6 Motion for Leave to Appear Pro Hac Vice. The attorney shall register for ECF, registration is available online at www.pacer.gov. Once registered, the attorney shall file a notice of appearance and ensure that s/he receives electronic notification of activity in this case. Also, the attorney shall ensure the $150 admission fee be submitted to the Clerks Office via filing the event Pro Hac Vice Filing Fee. Ordered by Magistrate Judge Roanne L. Mann on 12/9/2021. (LK) (Entered: 12/09/2021)
Civil Cover Sheet
(#1) COMPLAINT against All Defendants filing fee $ 402, receipt number ANYEDC-15002843 Was the Disclosure Statement on Civil Cover Sheet completed -NO,, filed by PHHHOTO Inc.. (Attachments: #1 Civil Cover Sheet) (Martin, Scott) (Entered: 11/04/2021)
(#31) Letter to the Honorable Kiyo A. Matsumoto by Meta Platforms, Inc. (Panner, Aaron) (Entered: 06/06/2022)
(#30) Letter to the Honorable Kiyo A. Matsumoto by PHHHOTO Inc. (Martin, Scott) (Entered: 06/06/2022)
(#5) NOTICE of Appearance by Irving Scher on behalf of All Plaintiffs (aty to be noticed) (Scher, Irving) (Entered: 11/08/2021)
(#4) NOTICE of Appearance by Sarah Rebecca LaFreniere on behalf of All Plaintiffs (aty to be noticed) (LaFreniere, Sarah) (Entered: 11/08/2021)
(#3) In accordance with Rule 73 of the Federal Rules of Civil Procedure and Local Rule 73.1, the parties are notified that if all parties consent a United States magistrate judge of this court is available to conduct all proceedings in this civil action including a (jury or nonjury) trial and to order the entry of a final judgment. Attached to the Notice is a blank copy of the consent form that should be filled out, signed and filed electronically only if all parties wish to consent. The form may also be accessed at the following link: #http://www.uscourts.gov/uscourts/FormsAndFees/Forms/AO085.pdf. You may withhold your consent without adverse substantive consequences. Do NOT return or file the consent unless all parties have signed the consent. (Neptune, Pierre) (Entered: 11/05/2021)
(#2) This attorney case opening filing has been checked for quality control. See the attachment for corrections that were made, if any. (Neptune, Pierre) (Entered: 11/05/2021)
Docket Entries
DocketElectronic Index to Record on Appeal sent to US Court of Appeals. #36 Notice of Appeal Documents are available via Pacer. For docket entries without a hyperlink or for documents under seal, contact the court and we'll arrange for the document(s) to be made available to you. (VJ) (Entered: 05/01/2023)
[-] Read LessDocket(#36) NOTICE OF APPEAL as to #35 Clerk's Judgment, by PHHHOTO Inc.. Filing fee $ 505, receipt number ANYEDC-16651554. Appeal Record due by 5/15/2023. (Martin, Scott) (Entered: 05/01/2023)
[-] Read LessDocket(#35) CLERK'S JUDGMENT: ORDERED and ADJUDGED that Defendants' Motion to Dismiss in its entirety is granted; that Defendants' claims are dismissed with prejudice; and that leave to amend a second time is denied. Ordered by Jalitza Poveda, Deputy Clerk on behalf of Brenna B. Mahoney, Clerk of Court on 3/31/2023. (JT) (Entered: 03/31/2023)
[-] Read LessDocket(#34) ORDER granting #27 Motion to Dismiss. For the reasons set forth in the attached Memorandum and Order, the Court GRANTS Defendants' Motion to Dismiss in its entirety, Defendants' claims are DISMISSED with prejudice, and leave to amend a second time is DENIED. The Clerk of Court is respectfully directed to enter judgment in favor of Defendants and to close the case. Ordered by Judge Kiyo A. Matsumoto on 3/30/2023. (LW) (Entered: 03/30/2023)
[-] Read LessDocket(#33) RESPONSE in Opposition re #32 MOTION to Stay Discovery filed by PHHHOTO Inc.. (Martin, Scott) (Entered: 03/17/2023)
[-] Read LessDocket(#32) MOTION to Stay Discovery by Meta Platforms, Inc.. (Panner, Aaron) (Entered: 03/14/2023)
[-] Read LessDocketORDER. Defendant Meta Platforms Inc., is respectfully requested to provide the Court with another two sets of courtesy copies to Chambers by FedEx or messenger of the: (1) Notice of Defendant Meta Platforms, Inc.'s Motion To Dismiss Amended Complaint; (2) Memorandum in Support of Meta Platforms, Inc.s Motion To Dismiss Phhhoto Inc.s Amended Complaint; (3) Meta Platforms, Inc.s Reply in Support of Its Motion To Dismiss Phhhoto Inc.s Amended Complaint; and (4) Amended Complaint by February 28, 2023. Ordered by Judge Kiyo A. Matsumoto on 2/24/2023. (LW) (Entered: 02/24/2023)
[-] Read LessDocketCase Reassigned to Magistrate Judge Lois Bloom. Magistrate Judge Roanne L. Mann no longer assigned to the case. Please download and review the Individual Practices of the assigned Judges, located on our #website. Attorneys are responsible for providing courtesy copies to judges where their Individual Practices require such. (TL) (Entered: 01/09/2023)
[-] Read LessDocket(#31) Letter to the Honorable Kiyo A. Matsumoto by Meta Platforms, Inc. (Panner, Aaron) (Entered: 06/06/2022)
[-] Read LessDocket(#30) Letter to the Honorable Kiyo A. Matsumoto by PHHHOTO Inc. (Martin, Scott) (Entered: 06/06/2022)
[-] Read LessDocketORDER granting #7 Motion for Leave to Appear Pro Hac Vice. The attorney shall register for ECF, registration is available online at www.pacer.gov. Once registered, the attorney shall file a notice of appearance and ensure that s/he receives electronic notification of activity in this case. Also, the attorney shall ensure the $150 admission fee be submitted to the Clerks Office via filing the event Pro Hac Vice Filing Fee. Ordered by Magistrate Judge Roanne L. Mann on 12/9/2021. (LK) (Entered: 12/09/2021)
[-] Read LessDocketORDER granting #6 Motion for Leave to Appear Pro Hac Vice. The attorney shall register for ECF, registration is available online at www.pacer.gov. Once registered, the attorney shall file a notice of appearance and ensure that s/he receives electronic notification of activity in this case. Also, the attorney shall ensure the $150 admission fee be submitted to the Clerks Office via filing the event Pro Hac Vice Filing Fee. Ordered by Magistrate Judge Roanne L. Mann on 12/9/2021. (LK) (Entered: 12/09/2021)
[-] Read LessDocket(#7) MOTION to Appear Pro Hac Vice for Gary L. Reback Filing fee $ 150, receipt number ANYEDC-15098952. by PHHHOTO Inc.. (Attachments: #1 Affidavit, #2 Certificate of Good Standing, #3 Proposed Order) (Reback, Gary) (Entered: 12/08/2021)
[-] Read LessDocket(#6) MOTION to Appear Pro Hac Vice for Michael D. Hausfeld Filing fee $ 150, receipt number ANYEDC-15098468. by PHHHOTO Inc.. (Attachments: #1 Affidavit, #2 Certificate of Good Standing, #3 Proposed Order) (Hausfeld, Michael) (Entered: 12/08/2021)
[-] Read LessDocket(#5) NOTICE of Appearance by Irving Scher on behalf of All Plaintiffs (aty to be noticed) (Scher, Irving) (Entered: 11/08/2021)
[-] Read LessDocket(#4) NOTICE of Appearance by Sarah Rebecca LaFreniere on behalf of All Plaintiffs (aty to be noticed) (LaFreniere, Sarah) (Entered: 11/08/2021)
[-] Read LessDocket(#3) In accordance with Rule 73 of the Federal Rules of Civil Procedure and Local Rule 73.1, the parties are notified that if all parties consent a United States magistrate judge of this court is available to conduct all proceedings in this civil action including a (jury or nonjury) trial and to order the entry of a final judgment. Attached to the Notice is a blank copy of the consent form that should be filled out, signed and filed electronically only if all parties wish to consent. The form may also be accessed at the following link: #http://www.uscourts.gov/uscourts/FormsAndFees/Forms/AO085.pdf. You may withhold your consent without adverse substantive consequences. Do NOT return or file the consent unless all parties have signed the consent. (Neptune, Pierre) (Entered: 11/05/2021)
[-] Read LessDocket(#2) This attorney case opening filing has been checked for quality control. See the attachment for corrections that were made, if any. (Neptune, Pierre) (Entered: 11/05/2021)
[-] Read LessDocketCase Assigned to Judge Kiyo A. Matsumoto and Magistrate Judge Roanne L. Mann. Please download and review the Individual Practices of the assigned Judges, located on our #website. Attorneys are responsible for providing courtesy copies to judges where their Individual Practices require such. (Neptune, Pierre) (Entered: 11/05/2021)
[-] Read LessDocket(#1) COMPLAINT against All Defendants filing fee $ 402, receipt number ANYEDC-15002843 Was the Disclosure Statement on Civil Cover Sheet completed -NO,, filed by PHHHOTO Inc.. (Attachments: #1 Civil Cover Sheet) (Martin, Scott) (Entered: 11/04/2021)
[-] Read Less
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