Facebook Hit with Antitrust Suits U.S., 46 States Target Choke Competition
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P2JW345000-5-A00100-17FFFF5178F ***** THURSDAY,DECEMBER 10,2020~VOL. CCLXXVI NO.137 WSJ.com HHHH $4.00 DJIA 30068.81 g 105.07 0.3% NASDAQ 12338.95 g 1.9% STOXX 600 394.90 À 0.3% 10-YR. TREAS. g 8/32 , yield 0.939% OIL $45.52 g $0.08 GOLD $1,834.60 g $36.20 EURO $1.2084 YEN 104.23 What’s Facebook Hit With Antitrust Suits U.S., 46 states target choke competition. Collectively,the cases reflect serted that Facebook “has Vice President and General News TheFTC’ssweeping anti- U.S. concern about the powerof used itsdominanceand mo- CounselJennifer Newstead. Instagram, WhatsApp trust case seeks to forceFace- dominant online platforms. nopoly powertocrush smaller “Peopleand small businesses purchases, as well as book to unwind itsacquisitions “Facebook’sactions to en- rivals and snuff out competi- don’t choose to use Facebook’s Business&Finance of WhatsApp andInstagram, trench and maintain itsmo- tion, all at the expense of ev- free services and advertising be- tactics against rivals two of itslandmark deals.The nopoly deny consumersthe eryday users,” and made “bil- cause they have to,they use states filed aseparateand sim- benefits of competition,” said lionsbyconverting personal them because our apps and ser- he FTC and 46 states BY BRENT KENDALL ilar lawsuit, alleging alack of Ian Conner,director of the data into a cash cow.” vices deliver the most value.We Tsued Facebook,accus- AND JOHN D. MCKINNON competition has harmed con- FTC’s Bureau of Competition. Facebook firedback by not- aregoing to vigorously defend ing the social-media com- sumers, including by weaken- “Our aim is to roll back Face- ing the FTC had previouslyap- people’sability to continue mak- panyofbuying and freez- WASHINGTON—TheFederal ing privacyprotections. book’santicompetitivecon- proved the Instagram and ing that choice.” ing out small startups to Trade Commission and 46 Thelawsuitscome weeks af- duct and restore competition WhatsApp transactions. TheFTC voted3-2 to file chokecompetition. A1 states sued Facebook Inc.oN terthe JusticeDepartment so that innovation and free “The government nowwants the lawsuit, which came after Wednesday, accusing the so- brought acase alleging Google competition caN thrive.” ado-over,sending achilling an investigation that stretched DoorDash shares surged cial-media giant of buying and wasillegally maintaining amo- NewYork Attorney General warning to American business morethan ayear.The agency’s 86% in their stock-market freezing out small startups to nopoly in itssearch business. Letitia James,aDemocrat, as- that no sale is ever final,” said PleaseturntopageA4 debut. The meal-delivery company ended its first trading day valued at about $71.8 billion. A1 DoorDash Airbnb priced shares in itsIPO at $68 apiece, setting avaluation of about $47bil- Brings lion based on afully diluted sharecount and including proceeds of the offering. A1 Big Gains AT&T received bids for itsDirecTV unit valuing the satellite-TV serviceatmore In Debut than $15 billion including debt, according to people familiar with the matter. A1 Of Shares GE agreed to paya$200 million penalty to settle SEC BY MICAH MAIDENBERG claims that it misled investors by failing to disclose prob- DoorDash Inc.delivered for lems in itsgas-turbine power investors, surging 86% in its and insurancebusinesses. B1 stock-market debut on Wednesday. Apple and Google will ban Theseven-year-oldcompany the databrokerX-Mode from ended itsfirst trading dayval- collecting location information ued at about $71.8billion, drawnfrommobile devices higher than manyofthe res- running their operating sys- taurant companies that depend tems afterrevelationsabout S on itscouriers. itsnational-securitywork. B1 NEW DoorDash’sshares opened G U.S. stocks declined, Wednesdayafternoon at $182 with the Dow, S&P 500 and each on the NewYork Stock Nasdaq losing 0.3%, 0.8% OOMBER Exchange,78% above their /BL and 1.9%, respectively. B11 higher-than-expected initial public offering price. Starbucks appointed in- WRIGHT Thestock ended trading at vestor Mellody Hobson as its TY Companies are ramping up efforts to provide equipment needed for the distribution of Covid-19 vaccines across the U.S. Above, $189.51, giving it amarket next chairwoman, positioning ultralow temperature freezers are assembled Wednesday at the So-Low Environmental Equipment Co. facility in Cincinnati. value—on afully diluted share the chain to be among the count—that surpasses the com- biggest U.S. firms with aBlack bined worth of Chipotle Mexican person leading itsboard. B1 Grill Inc., Domino’s PizzaInc. Campbell Soup said a With Vaccine Set to Roll Out, and Dunkin’ Brands Group Inc. surge in sales brought on by TheSan Francisco-based the pandemic is receding. B3 company has never turned an annual profit,but asurge in World-Wide States Prioritize Who Gets It demand during the Covid-19 pandemic has helped to trans- form it. TheU.S. is about to launch Revenue and ordersat one of the most daunting TheU.S.isabout to launch clearance, 2.9million doses are summer,officials have said. DoorDash morethan tripled public-health effortsingener- one of the most daunting pub- settobesent out to all states The Covid Fight But statevaccination plans this summer and fall, com- ations: swiftly distributing a lic-health effortsingenera- and the District of Columbia. For Greg Ip: ‘Light’ lockdowns vary widely and leave many pared with the year before, as Covid-19 vaccine acrossall 50 tions: swiftly distributing a most, that initial shipment will lesscostly,lesseffectiveA2 questions unanswered. Health consumerstired of prepping states,each of which will de- Covid-19 vaccine acrossall 50 be enough to inoculatealittle Canada approves Pfizer, officials are having to prioritize food at home and ordered termine who gets priority. A1 states,each of which will de- under1%oftheir populations. BioNTech shot.................. A9 among groups including older more meals for delivery. Canada became the third termine who gets priority. Afederal official said Asia grapples with rise in adults,teachersand minority Apush intothe suburbs countrytoauthorizeuse of Wednesdaythat an additional infections......................... A10 communities disproportionately also has helped DoorDash be- the vaccine produced by By Dan Frosch, 2.9million doses would be held affected by Covid-19.Many come the market leader in U.S. Pfizer and BioNTech. A9 Elizabeth Findell back and shipped about three states also facechallenges get- food delivery. weeks later forthose initial vac- other health-careworkers who ting the vaccine to dramatically Founded in 2013 by Tony A flurry of competing and Peter Loftus cine recipientstoget the second interact with infected patients. different populations,from Xu,who emigrated from China proposals foranother coro- As soon as this weekend, the of the two-dose regimen, and As moredoses areshipped, crowded and diverse cities to with his parentswhen he was navirus relief packagerico- Food and Drug Administration is another 500,000 doses from the manysaid they would givepri- isolated ruraltowns. 5yearsold, DoorDash now cheted around the Capitol as lawmakershunted forways expected to grant emergencyap- initial supply would be held in ority to residentsoflong-term- And they have to do it while must defend itsnearly 50% proval to aCovid-19 vaccine reserveincase problems arise. care facilities next. Thebulk of coping with asurge in corona- U.S. market share in the com- to resolve athornydebate from Pfizer Inc.and BioNTech Most states aregiving the ini- the population is expected to get virus cases already straining petitivefood-deliveryindustry over liability protections. A3 SE. Within 24 hoursofthat tial batch to doctors, nurses and the vaccine in the spring or PleaseturntopageA8 PleaseturntopageA10 Biden plans to nominate Katherine TaiasU.S.Trade Representative, turning to Singing in the atrade lawyer with exper- Airbnb Challenged by AngryNeighbors tise on China and proven diplomatic skills. A3 Shower Gets Biden’sson Hunter said the U.S. attorney’s officeinDela- Some Help Unfavorable local regulations loom as company begins trading publicly ware is investigating his tax affairs, putting his financial iii BY PREETIKA RANA Airbnb shares are scheduled to begin able local laws is among its biggest dealingsinthe spotlight. A4 AirPods enter a trading on Thursday on the Nasdaq challenges in the U.S. and around the Immigrant children and In the dozenyearssinceitwas Stock Market after an initial public of- world. families areagain heading new, wetfrontier— founded, Airbnb Inc.has moved into fering. The company priced its shares Many Silicon Valley tech giants have north to the U.S.-Mexico hundreds of U.S. cities, transforming at $68 apiece on Wednesday, according battled regulators in Washington, D.C., border in increasing num- oftenbyaccident manyofthem intovacation-rental to people familiar with the matter, set- and state capitals. Airbnb’s fights are bersfollowing alull. A3 meccas. ting a valuation of about $47 billion breaking out city by city. For the com- Japan plans to develop BY KENNY WASSUS In response, residents across the based on a fully diluted share count pany, the opposition could yield country have ratcheted up grass-roots and including proceeds of the offering. slower-than-expected growth and missiles that canreach North Deven Machette’s post-run efforts aimed at keeping authority over Airbnb has warned prospective inves- higher costs if local authorities impose Korea, part of adefense buildup that would giveTo- routine began likeany other.