Facebook hit with antitrust suit

Apparently trouble is brewing over at Facebook, CNet is reporting that a consumer rights advocate group called Consumer Watchdog has filed a 28-page antitrust complaint alleging that Facebook’s virtual currency, Facebook Credits, is anti-competitive in the world of virtual goods and “undermines outside of the Facebook platform.”

According to the article, Consumer Watchdog goes on to state that Facebook recently revised the terms for game developers including a clause to only use Facebook Credits as the mode of payment. On top of taking a 30% cut from developers (sounds familiar), Facebook is also allegedly stipulating that developers not offer their wares at a discount outside of Facebook’s ecosystem. Consumer Watchdog believes that this will ultimately tip market share and profitability in Facebook’s favor and cost consumers more for fewer options.

For what it’s worth, Consumer Watchdog has vocally petitioned against Google for their arguably, over reaching (lack of) privacy practice. In 2010, the group won a Rose Foundation grant to monitor the Big G and the latest round of legal complaints seems to indicate the group is setting up to widen it’s net. For those that are interested, you can read the full complaint here.

Source: CNet

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