Court: United States District Court, Northern District of Illinois
Bracamontes and Williams, et al. v. Meta Platforms, Inc. and Netflix, Inc., 24-cv-11839
Filed by WBE and co-counsel, Plaintiffs in this case allege that Netflix and Meta (formerly Facebook) engaged in an unlawful agreement to suppress competition in the U.S. video-streaming market. The lawsuit, filed on behalf of all U.S. residents who paid for Netflix subscriptions since August 2017, accuses the two tech giants of colluding to allocate markets in violation of the Sherman Act.
The complaint alleges that Netflix and Meta entered into an agreement in early 2019 to limit competition. Meta allegedly abandoned its streaming platform, Facebook Watch, ceasing substantial investments and marketing efforts. In return, Netflix purportedly provided user data to Meta and increased its advertising spend on Facebook’s platform. This alleged exchange allowed Netflix to dominate the video-streaming market while boosting Meta’s advertising algorithms and revenue.
As a result, consumers suffered from higher subscription costs and reduced choices. The lawsuit points to Netflix’s unprecedented price hikes in January 2019—ranging from 12.5% to 18%—as evidence of the anti-competitive effects of this collusion. At the time, Netflix controlled 89% of the streaming market, leveraging this dominance to increase prices without fear of competition from Meta.
Plaintiffs also emphasize the harmful impact of the agreement on market innovation. Before the alleged deal, Facebook Watch was positioned as a significant competitor, supported by Meta’s vast user base, advanced advertising capabilities, and plans to invest $1 billion in original content. This potential threat to Netflix’s dominance was extinguished through the agreement, depriving consumers of a more competitive market.
The class action seeks treble damages for overcharges on Netflix subscriptions, as well as injunctive relief to restore competition in the streaming market.
To read a copy of the complaint, click here.