FTC and States Sue Facebook - Daily Crunch

Facebook is currently involved in significant antitrust legal challenges, while DoorDash and C3.ai have recently begun trading publicly, and YouTube has unveiled updated policies concerning election misinformation. This is your Daily Crunch for December 9, 2020.

Key development: Facebook sued by FTC and 48 states

Today, the Federal Trade Commission initiated an antitrust lawsuit against Facebook, joined by attorneys general from 48 states representing 46 states in total.

These are distinct legal actions, though the involved parties coordinated their investigative efforts. Both lawsuits allege that Facebook engaged in anti-competitive practices through its acquisitions of Instagram and WhatsApp, and that it leveraged its market dominance to stifle competition. The FTC’s suit specifically requests that Instagram and WhatsApp be separated from the parent company.

In a public statement via Twitter, Facebook responded, “After the FTC previously approved our acquisitions, the government is now seeking a reversal without considering the potential consequences for the wider business landscape or the individuals who utilize our products daily.”

Major technology companies

DoorDash and C3.ai experience substantial gains in their initial public trading — Two U.S.-based technology companies saw their valuations increase following their debuts on the public market.

YouTube implements measures against US election misinformation after the deadline for recounts — YouTube waited until the “safe harbor” date, the point at which state-level audits and recounts are finalized, to begin enforcing regulations regarding false information related to the election.

Google’s CEO pledges a review of the circumstances surrounding Dr. Timnit Gebru’s exit — CEO Sundar Pichai communicated in a memo that the company must “take accountability for the fact that a highly talented, prominent Black female leader departed Google with dissatisfaction.”

Startups, funding, and venture capital

Squire, a technology company focused on the barbershop industry, sees its valuation triple to $250M in its latest funding round — Squire secured $59 million in funding led by Iconiq Capital.

Career Karma obtains $10M in funding to link students with coding bootcamps — The company is adopting a support-focused approach within the coding bootcamp sector.

Ada Ventures successfully closes its first fund at $50M, concentrating investments on founders from diverse backgrounds addressing societal challenges — Ada Ventures launched on stage at TechCrunch Disrupt one year prior to this week.

Insights and analysis from Extra Crunch

An examination of Coinbase’s history and future with Jeff John Roberts, author of ‘Kings of Crypto’ — “Kings of Crypto” details the story of Coinbase, Brian Armstrong, and the vision of a cryptocurrency-based economy.

A venture capitalist analyzes data as several marketplace unicorns prepare for IPOs — Menlo Ventures partner Venky Ganesan states, “Growth is the most important factor.”

Strategies for DoorDash and C3.ai to maintain their high IPO valuations — A receptive market results in significant valuations, substantial capital, and elevated expectations.

(Extra Crunch is our subscription service, designed to make information about startups more accessible. You can register here.)

Other news

Gift Guide: Top books of 2020 as selected by VCs and TechCrunch writers (Part 2) — This installment features nine additional books (plus one extra) recommended by venture capitalists and TechCrunch writers.

Streaming services, including Netflix and CBS All Access, introduce new features for families — Netflix announced the launch of the Kids Activity Report and Family Profiles, while CBS All Access implemented a Kids Mode.

TC Sessions: Space 2020 is scheduled to begin next week — We will be hosting (in a virtual format) leading experts, innovative organizations, and ambitious startups focused on space exploration.

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