US Federal Trade Commission Launches Antitrust Trial Against Meta; Facebook Defends Instagram, WhatsApp Acquisitions

The United States Federal Trade Commission (FTC) has opened a landmark antitrust trial against Meta Platforms Inc, accusing the tech giant of unlawfully cementing a monopoly in the social networking space, according to a NYT report.

The case, heard at the US District Court in Washington DC, could result in the unwinding of Meta’s acquisitions of Instagram and WhatsApp, two of the most widely used platforms globally.

The FTC argues that Meta, formerly Facebook, engaged in a “buy-or-bury strategy” to eliminate emerging rivals before they could challenge its dominance.

FTC lead litigator Daniel Matheson said in opening remarks, “For more than 100 years, American public policy has insisted firms must compete if they want to succeed. The reason we are here is that Meta broke the deal.”

He added, “They decided that competition was too hard and it would be easier to buy out their rivals than to compete with them.”

Meta’s lawyers denied the allegations, insisting the company faces fierce competition from TikTok, YouTube, LinkedIn and other platforms. They argued that Instagram and WhatsApp were acquired lawfully over a decade ago with federal approval.

“This case is a grab bag of FTC theories at war with fact and at war with the law,” said Meta’s litigator Mark Hansen, adding, “The facts are going to prove that the FTC’s theories are all wrong.”

The case relies on Section 2 of the Sherman Antitrust Act, which prohibits having a monopoly by non-competitive means.

The FTC alleges Meta overpaid for Instagram in 2012 ($1 billion) and WhatsApp in 2014 ($19 billion) to neutralize them as future threats. It plans to present internal communications as evidence.

Headed by Judge James Boasberg, the eight-week trial might fundamentally redefine antitrust enforcement within the tech industry. Legal experts note that proving Meta’s success would not have occurred without the acquisitions is a formidable challenge.

If the FTC prevails, Meta may be required to sell off its subsidiaries, and this could fundamentally change the way Big Tech works and set precedent in curbing monopolistic behaviour.

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