FTC antitrust lawsuit against Meta's 'monopoly power' begins
16/04/2025 | Financial Times
The US Federal Trade Commission (FTC) has begun a landmark antitrust trial against Meta, arguing that its acquisitions of Instagram in 2012 and WhatsApp in 2014 gave the technology company monopoly power and stifled competition. FTC lawyer Daniel Matheson presented internal communications from Meta CEO Mark Zuckerberg, suggesting a "buy-or-bury" strategy to eliminate potential rivals. Zuckerberg, who was present in court, defended the acquisitions, stating that they were aimed at acquiring "different tools" and that both Instagram and WhatsApp have flourished under Meta's ownership.
The FTC contends that Meta's control over these platforms has resulted in an 85% market share in time spent on its apps, preventing genuine competition. They argue that Zuckerberg's emails from the time of the acquisitions demonstrate an intent to neutralise competitive threats. Zuckerberg countered by saying that the social media landscape is highly competitive, including platforms like TikTok and YouTube, which the FTC's narrow market definition excludes. Meta's lawyer, Mark Hansen, argued that the company provides free services and that the acquisitions have benefited consumers.
If the court finds Meta guilty of anti-competitive practices, the company could be forced to divest Instagram and WhatsApp, a move that could significantly impact its business. The trial is expected to last several weeks and will be a key test of the US government's approach to antitrust enforcement against Big Tech.
In a related article, The Guardian reports that Mark Zuckerberg had considered divesting Instagram in 2018 in anticipation of a potential antitrust suit. In an email revealed in the trial, Zuckerberg wrote: "While most companies resist break-ups, the corporate history is that most companies actually perform better after they've been split up." He went on to say that "there is a non-trivial chance" his company would be forced to sell Instagram and WhatsApp anyway.
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