Facebook Sued Over Virtual Currency System
According to a Bloomberg report, Gambit, a virtual currency and payment-processing provider, is accusing Facebook of breaking antitrust laws.
Facebook is being sued by Kickflip for allegedly breaking antitrust laws in the social gaming currency market.
Gambit said that Facebook’s decision in 2009 to offer its own virtual currency and payment processing services killed a “vibrant and competitive market”.
The service allows gaming providers to issue players with virtual currency in exchange for real money or advertising offers.
Kickflip is claiming that Facebook marginalised its competitors by blacklisting Gambit and forcing developers to only use Facebook’s own services throughout 2009 and 2010.
Kickflip is hoping that a judge will bar Facebook from enforcing its policy and is also seeking unspecified damages.
A spokesperson for Facebook said that they “believe the lawsuit is without merit and will defend ourselves vigorously.”
Facebook credits first appeared in 2008 when it exchanged the monetary units for its “gifts” into “credits” in place of US dollars. Then over the next two years the social network introduced a method for developers to use credits in the apps on the Facebook platform.
The credits are now used in hundreds of games such as Farmville and even at some shops such as Target.