Federal Judge Rules in Meta Antitrust Case
A federal judge has issued a ruling in favor of Meta Platforms Inc. (formerly Facebook) regarding an antitrust lawsuit filed by the Federal Trade Commission (FTC). The decision means Meta will not be required to divest its WhatsApp and Instagram platforms.
Background of the Lawsuit
The FTC initiated the antitrust suit five years ago, alleging that Meta engaged in anti-competitive practices. The Commission contended that Meta acquired Instagram in 2012 and WhatsApp in 2014 as part of a strategy to eliminate emerging rivals and maintain a monopoly in social networking. The FTC had sought a court order to compel Meta to spin off Instagram and WhatsApp into independent companies.
The Court's Decision
U.S. District Judge James Boasberg concluded that the FTC did not present sufficient evidence to demonstrate that Meta holds a monopoly in the social media sector. Judge Boasberg noted the significant evolution of the social media landscape since the lawsuit was filed. He highlighted the increased dominance of platforms like YouTube and the emergence of TikTok as a major competitor to Meta's products.
Responses
Meta released a statement welcoming the court's decision. The company asserted that it faces "fierce competition" and that its products contribute to user benefit, business growth, American innovation, and economic development. Meta also expressed its intention to continue collaborating with the Administration and investing in the United States.
During the trial, Meta's legal team argued that the company operates within a competitive market and that the acquisitions of Instagram and WhatsApp were based on the quality of those products. Meta's attorneys also pointed out that federal regulators had approved both acquisitions at the time they occurred. Meta CEO Mark Zuckerberg testified that the decision to acquire Instagram was based on his assessment of the product's quality, leading him to prioritize acquisition over internal development of a similar application.