Facebook Faces Antitrust Suit Over Virtual Currency

Facebook is facing an actual lawsuit over virtual currency, with Austin, Texas-based Kickflip, which does business as Gambit, claiming that the social network violated antitrust laws with its entry into the sector and resulting terms.

Bloomberg reported that before Facebook introduced Facebook Credits and forced developers to use them exclusively, along with taking 30 percent of revenue, there were at least 20 virtual currency service providers in operation, including Gambit, adding in its complaint:

Facebook leveraged its dominance in the social game marketplace to control and dominate the separate market for virtual currency services. As the result of Facebook’s actions, Gambit’s business was destroyed.

According to Bloomberg, Kickflip is asking the court to prevent Facebook from enforcing its policies on virtual currency, as well as seeking unspecified damages.

Readers: Do you think Kickflip has a case?

Related Stories
Mediabistro Course

Content Marketing 101

Content Marketing 101Almost 60% of businesses use some form of content marketing. Starting December 8, get hands-on content marketing training in our online boot camp! Through an interactive series of webcasts, content and marketing experts will teach you how to create, distribute, and measure the success of your brand's content. Register now!