Meta Wins Antitrust Case Against FTC

Meta has scored a significant victory in its ongoing legal battles, with a US district judge ruling that the company did not violate antitrust laws in its acquisitions of Instagram and WhatsApp. The decision, handed down by Judge James Boasberg in Washington, DC, rejects the Federal Trade Commission's (FTC) claim that Meta created a monopoly by acquiring the two platforms in 2012 and 2014, respectively.

In his ruling, Judge Boasberg stated that the FTC failed to demonstrate that Meta currently holds monopoly power in the social media market. "The Court ultimately concludes that the agency has not carried its burden: Meta holds no monopoly in the relevant market," Boasberg wrote. He emphasized that the social media landscape is rapidly evolving, with fierce competition from platforms like TikTok and YouTube. Even if Meta once held dominant power in the market, the judge noted that the company's share is shrinking as new competitors gain traction.

The FTC's case, filed in 2020, sought to force Meta to divest Instagram and WhatsApp, arguing that the company's acquisitions stifled competition by eliminating emerging rivals. The FTC pointed to Meta's $1 billion purchase of Instagram and $19 billion deal for WhatsApp, claiming that these acquisitions were part of a strategy to prevent future competition. However, Judge Boasberg disagreed, citing testimony from Meta CEO Mark Zuckerberg and other industry leaders, who argued that the company faces substantial competition from other major players in the space.

During the trial, which included testimony from Zuckerberg, former COO Sheryl Sandberg, and other Meta executives, the company argued that platforms like TikTok and YouTube have fundamentally reshaped the social media market. Judge Boasberg acknowledged the changing dynamics of the industry, noting that "Meta’s apps and the social media landscape have changed" since the FTC first filed its case. He specifically pointed to TikTok, which has rapidly gained popularity and now competes directly with Meta’s core services like Facebook and Instagram.

The ruling represents a major win for Meta, which had faced the possibility of having to spin off its prized assets. Meta's legal team hailed the decision, with Chief Legal Officer Jennifer Newstead saying, "The Court’s decision today recognizes that Meta faces fierce competition." She also emphasized that Meta's products "exemplify American innovation and economic growth," adding that the company looks forward to continuing its partnership with the U.S. government.

While the ruling is a setback for the FTC, which expressed disappointment over the outcome, the agency has not ruled out appealing the decision. FTC spokesperson Joe Simonson said, "We are deeply disappointed in this decision," and suggested that the agency is reviewing its options. Simonson also pointed to Boasberg’s controversial past, noting that the judge "has clashed multiple times with the Trump administration" and is facing efforts to impeach him.

This decision also comes at a time when other Big Tech companies, like Google and Apple, are under increased scrutiny from regulators. In recent months, Google has lost several antitrust cases, though it has avoided more severe penalties. For Meta, however, the ruling removes the immediate threat of a forced breakup, allowing the company to continue operating its vast social media empire unscathed for now.

Despite this legal win, Meta’s challenges are far from over. The company is still facing other lawsuits and ongoing scrutiny of its impact on users, particularly concerning the mental health effects of social media on young people. Zuckerberg is set to testify in a landmark trial over the addictive nature of social media apps and their potential harm to minors.