Facebook Credits could violate U.S. antitrust laws, be in big trouble
When Facebook Credits were officially introduced in July 2011, the social game industry collectively groaned. The 30 percent cut that the social network now takes from the universally-instated currency hit game makers hard. As it turns out, Facebook's grand money-making scheme could be for naught, if attorneys Derek Newman and Brian Strange have their way.
The two firmly believe that Facebook, because of its dominant position in the social networking world, could be in violation of U.S. antitrust laws. These laws, according to Newman, prevent scenarios like "when one company dominates an area of commerce with a product and then forces customers to accept another product in order to use the first."
With that, the attorney duo created StopFacebookCredits.com to raise awareness about Facebook's potential violations and investigate whether Facebook is, in fact, violating these laws. Of course, Newman and Strange offer their services to those who may have a complaint against Facebook's Credits initiative. In fact, the two are ready to file a class action suit against Facebook.
"Virtual-currency companies, game developers, and the entire social gaming community are paying higher prices and receiving fewer services," Strange said in a release. If this actually happens, it could set a standard for other platform providers that force their own currency upon their users. So, you can either grab the popcorn or go up in arms with Newman and Strange. Choose wisely.
Could Facebook Credits be in violation of antitrust laws? If this went through, what would happen to other currency providers in social games? Sound off in the comments. Add Comment.