Meta Platforms Inc. is facing a landmark antitrust trial that could potentially force it to divest Instagram and WhatsApp, two major platforms it acquired over a decade ago.
The trial marks a major test for the Federal Trade Commission (FTC), which filed the lawsuit during Donald Trump’s presidency in 2020, accusing Meta of eliminating competition and creating a monopoly in the social media market.
The FTC claims Meta pursued a strategy of buying out rivals, citing CEO Mark Zuckerberg’s 2008 statement: “It is better to buy than compete.”
Facebook’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were allegedly part of this strategy, helping the company dominate mobile and youth-oriented social media.
The FTC argues Meta used anti-competitive practices and acquisitions to neutralize emerging threats, as newer platforms like Snapchat and TikTok started gaining popularity.
Meta contends the FTC’s lawsuit is unfounded, arguing that platforms like TikTok, YouTube, and iMessage are clear competitors to its services.
Experts say the FTC faces challenges in proving Meta’s current monopoly status, especially with the growing number of social media competitors.
The case will be decided by U.S. District Judge James Boasberg, who previously allowed the case to proceed to trial, though he has shown skepticism toward the FTC’s narrow market definition.
A forced break-up of Instagram could severely impact Meta’s advertising business, as Instagram is now its largest revenue driver in the U.S.
While Meta is under fire, other tech giants like Google and Amazon are also facing antitrust scrutiny, signaling broader regulatory pressure on Big Tech.
Legal experts say this case highlights the difficulty of applying century-old antitrust laws to fast-evolving tech markets.
