Ninth Circuit Dismisses Refusal to Deal Claim

The Ninth Circuit recently dismissed a Section 2 claim against the social networking site Myspace.  The plaintiff, LiveUniverse Inc., alleged that Myspace violated Section 2 by disabling links to other social networking sites.  Although the court agreed that Myspace had market power, its conduct was not deemed to be exclusionary.  LiveUniverse argued the Myspace’s practice reduced consumer choice and reduce the quality of the social networking experience.  The appellate court held that the practice did not improperly reduce competition in the social networking market.

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