Till the end of today, the 30th June 2011, Facebook users will be able to buy game and virtual goods with game credits or Facebook Credits via most credit cards or PayPal. Come tomorrow, all transactions – not only virtual items in social games, but digital goods like movies and music – will take place via Facebook credits only.
Consumer Watchdog filed a complaint with the U.S. Federal Trade Commission over the company’s virtual currency arguing, in a 28-page complaint, that “the new Facebook Credits terms will enable Facebook to maintain and extend its monopoly power over the market for virtual goods purchased in social games.”
In addition, the complaint accuses the social networking giant of restricting competition by prohibiting game developers from offering lower prices to users outside the Facebook platform.
Ten Facebook Credits approximately cost UD$1, and the sale of Facebook Credits is currently estimated to be in excess of US$2 billion.
With its hand on 30% of every transaction that takes place via Facebook Credits, the introduction Facebook Credits as the only virtual currency on Facebook, and without any competition, puts the networking powerhouse on the road to dominance of all online commercial transactions and further extend Facebook’s already overwhelming monopoly power.
Referring to a rumored exemption granted to Zynga, Consumer Watchdog also took a dig at the leading social game developer on Facebook.
“The agreement between Facebook and Zynga, if published reports are correct, would therefore constitute a conspiracy between competitors and further extend Facebook’s already overwhelming monopoly power,” the group said.
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