Meta Platforms Inc. faces a pivotal antitrust trial this week, as US regulators seek to dismantle the tech giant’s empire by forcing the sale of Instagram and WhatsApp, according to AP News.
US regulators alleged that the acquisitions were designed to crush competition and cement an illegal social media monopoly. The case, launched in 2020 under Donald Trump’s administration, marks the Federal Trade Commission’s (FTC) most aggressive bid to rein in Big Tech’s dominance.
The FTC contends Meta’s acquisitions of Instagram (2012) and WhatsApp (2014) were central to a monopolistic playbook articulated by CEO Mark Zuckerberg in 2008: “It is better to buy than compete.” Prosecutors also argue the deals eliminated nascent rivals as Facebook struggled to transition from desktop to mobile dominance.
Unable to maintain its monopoly by fairly competing, the company’s executives addressed the existential threat by buying up new innovators that were succeeding where Facebook failed.
At the time, Instagram was purchased for $1 billion, while WhatsApp cost $22 billion. Both now boast over 2 billion users each.
The FTC defines Meta’s market narrowly, excluding platforms like TikTok, YouTube, and iMessage as rivals, a stance that experts call contentious. However, Meta emphasised in court filings that today’s social media landscape includes fierce competitors like TikTok, which the FTC excludes from its market definition.
The evidence at trial will show what every 17-year-old in the world knows: Instagram, Facebook and WhatsApp compete with Chinese-owned TikTok, YouTube, X, iMessage and many others. More than 10 years after the FTC reviewed and cleared our acquisitions, the Commission’s action in this case sends the message that no deal is ever truly final.
The trial coincides with Meta’s push to revamp Facebook for younger audiences and follows failed bids to acquire rivals like Snapchat. Meanwhile, the FTC’s case hinges on proving Meta’s current monopoly power, a tall order given TikTok’s rise and shifting user preferences.
Meta is not alone in regulators’ crosshairs. Google faces a ruling on breaking its search monopoly, whereas Amazon confronts its own antitrust scrutiny.
