Facebook Faces Antitrust Complaint

Consumer Watchdog, a public interest group based in the United States, filed an antitrust complaint with the Federal Trade Commission with regards to Facebook Credits. The group claims that the virtual currency used to buy assets in online games in the social network is anticompetitive.

Consumer Watchdog objects the new terms for using the Facebook credits that will take effect on Friday. It says that the new terms will enable Facebook to extend its monopoly over the virtual goods market in social games within the site.

The new terms prohibit game developers from charging lower prices for their games on other social networks. The consumer group said that Facebook wants to dictate prices. It undermines competition and forces the consumers to pay higher prices.

In the past, Consumer Watchdog is a Google critic. It once labeled video ads of former CEO Eric Schmidt as creepy. It looks like the group is expanding its range has taken Facebook as its next target. The group also included Zynga in its complaint. It said that the social gaming company conspired with Facebook through an agreement made last May 2010. Although the details of the deal are secret, it is rumored to include concessions on Facebook's part regarding Facebook Credits.abuiyad