Consumer Watchdog Chases Facebook To FTC

Law360, Los Angeles (June 29, 2011, 9:09 PM EDT) -- California-based advocacy group Consumer Watchdog filed a complaint with the Federal Trade Commission on Tuesday asking it to investigate and enjoin alleged anti-competitive business practices by Facebook Inc. in the market for virtual goods purchased in social games.

The nonprofit contends that under revised contractual arrangements that go into effect Friday, software developers who create games for the Facebook platform must agree to exclusively use Facebook’s own virtual currency, Facebook Credits, and accede to other terms that discourage competition.

“FTC investigation and enforcement is necessary to...
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