Facebook stock is tanking and puncturing Nasdaq in its spiral. | Source: REUTERS/Leah Millis/File Photo
Facebook stock (FB) plunged after a nine-state antitrust investigation was announced against the social-media monopoly. As of this writing, Facebook is the worst-performing stock in the Nasdaq.
Facebook tumbled 1.9% shortly after the attorneys general of eight states and the District of Columbia launched their investigation. The multi-state coalition includes Colorado, Florida, Iowa, Nebraska, North Carolina, Ohio and Tennessee.
Facebook is already being investigated by the Federal Trade Commission for alleged antitrust violations. That’s separate from the record-setting $5 billion FTC fine FB agreed to pay for violating user privacy.
Facebook accused of overcharging for ads
New York Attorney General Letitia James vowed to investigate “whether Facebook stifled competition and put users at risk.” Specifically, James will examine if Facebook:
- Increased ad prices.
- Endangered consumer data.
- Reduced the quality of consumers’ choices.
‘Billions of dollars in ill-gotten gains’
CCN presaged this crackdown in January 2019, when we uncovered a damning report claiming Facebook is committing mass fraud. How? By overcharging companies for the ads they place based on Facebook’s artificially inflated user statistics.
Keep in mind that the larger Facebook’s user base is, the more money it can charge for ads.
Facebook Has 1 Billion Fake Accounts, Mark Zuckerberg ‘Greatest Con Man in History’: Researcher https://t.co/3mqsNk4Ux7
— CCN Markets (@CCNMarkets) January 24, 2019
Researcher: Facebook has over 1 billion fake accounts
The shocking exposé was written by Aaron Greenspan, a tech entrepreneur and former Harvard classmate of Mark Zuckerberg.
According to Greenspan’s 70-page research report,