Thursday, September 8, 2011

CUTS Sues Facebook for Service Charge on Social Games

CUTS a consumer interest oriented NGO has filed a case against Facebook. Facebook is a social networking website with 500 million users. Facebook provides social games on its website. Some social games are provided by independent game developers. Zynga is dominant player in market. Facebook has started charging 30% of service charge from game developers except Zynga.

Informant alleges that this will amount to abuse of dominant position under Section 4 of Competition Act 2002. I will amount to entry barrier to new players and drive existing players out of the market.

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