Meta to face its biggest trial yet, may lose control of WhatsApp, Instagram: All you need to know
Meta faces a six-year FTC antitrust trial, alleging it eliminated competition through acquisitions of Facebook, Instagram, and WhatsApp.
Meta is set to face the Federal Trade Commission’s (FTC) antitrust trial on Monday, marking the culmination of a six-year investigation and legal battle that could determine the future of the tech giant.
The US competition and consumer watchdog alleges that Meta acquired Facebook, Instagram, and WhatsApp to eliminate competition and establish a monopoly in the market, according to the BBC. Although the FTC initially reviewed and approved these acquisitions, it also committed to monitoring their outcomes.
The case will feature testimonies and evidence from multiple witnesses. Lawyers representing both the FTC and Meta will first present their opening statements before U.S. District Judge James Boasberg. The trial is expected to run for seven to eight weeks. Meta CEO Mark Zuckerberg, former COO Sheryl Sandberg, and Instagram head Adam Mosseri are all expected to testify, NPR reported.
FTC’s arguments
The FTC argues that Meta follows a “buy or bury” strategy, targeting and acquiring companies it perceives as competitive threats. According to NPR, the government plans to present a 2012 internal email from Zuckerberg stating that the purchase of Instagram was intended to “neutralize a potential competitor.” The FTC contends that such behavior violates federal antitrust laws.
Rebecca Haw Allensworth, a professor of antitrust law at Vanderbilt Law School, told the BBC that in Zuckerberg’s own words, “it's better to buy than to compete.”
According to the FTC’s case file, Facebook systematically tracked potential rivals and acquired companies it saw as serious competitive threats. The FTC also alleges that Facebook monetizes its personal social networking monopoly primarily through surveillance-based advertising. The trial will therefore attempt to prove Meta’s possession of monopoly power and its willful maintenance of that power.
What the FTC wants
According to Wired, the commission seeks to restore market competition, which could include forcing Meta to divest Instagram and WhatsApp. Such a ruling could be disastrous for the tech giant, as Instagram generates a significant share of its advertising revenue.
Meanwhile, Meta spokesperson Christopher Sgro said last week that the FTC’s lawsuit “defies reality” and emphasized that the company operates in a highly competitive social media market.
