The landmark FTC v Meta trial begins, challenging Meta's acquisitions of Instagram and WhatsApp. A potential win for the FTC could force Mark Zuckerberg to break up the company.
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| The FTC’s antitrust case against Meta highlights the tech giant's acquisition practices and the potential breakup of its influential apps, Instagram and WhatsApp. Image: CH |
Washington, USA — April 15, 2025:
The long-awaited antitrust trial against Meta Platforms, Inc., the parent company of Facebook, Instagram, and WhatsApp, officially kicked off in Washington on Monday. The case, filed by the Federal Trade Commission (FTC), focuses on Meta's 2012 acquisition of Instagram for $1 billion and its 2014 purchase of WhatsApp for $19 billion, both of which the FTC argues were designed to stifle competition and eliminate emerging rivals in the social media space.
FTC lawyer Daniel Matheson accused Meta of choosing acquisitions over fair competition. “They decided that competition was too hard and it would be easier to buy out their rivals than to compete with them,” Matheson argued in his opening statements.
Meta countered by claiming the FTC’s lawsuit was misguided, pointing out that the agency had previously reviewed and approved the acquisitions. Mark Hansen, Meta’s attorney, emphasized that the purchases were aimed at enhancing Instagram and WhatsApp as part of Meta’s broader vision to improve the consumer experience. “Acquisitions to improve and grow have never been found unlawful,” Hansen stated. “They should not be found unlawful here.”
The stakes of this trial are high, as a victory for the FTC could lead to the breakup of Meta. Specifically, the company could be forced to divest Instagram and WhatsApp, significantly impacting Meta's business structure. The FTC claims that the acquisitions were not only anti-competitive but also overpriced, citing that Instagram's purchase was designed to neutralize a rising competitor to Facebook.
According to Rebecca Haw Allensworth, a professor of antitrust law at Vanderbilt Law School, Mark Zuckerberg’s own words could serve as crucial evidence. She pointed to emails from Zuckerberg in which he expressed a preference for buying competitors rather than competing directly. “He said it’s better to buy than to compete,” Allensworth remarked, noting that these candid statements could prove damaging to Meta’s defense.
Matheson also referenced a 2012 internal memo from Zuckerberg, in which he discussed the need to “neutralize” Instagram, calling it a “smoking gun” for the FTC’s case.
Meta’s defense remains firm, with the company emphasizing that its acquisitions were beneficial for consumers. The company also maintains that it faces stiff competition from various apps, including TikTok, X, YouTube, and iMessage, which have emerged as significant challengers in the social media and messaging markets.
The trial is expected to last several weeks, with both Mark Zuckerberg and Sheryl Sandberg, Meta’s former chief operating officer, scheduled to testify. The case has political undertones, as it was initially filed during the administration of President Donald Trump. Since then, the case has become more politically charged, especially after reports surfaced that Zuckerberg lobbied Trump to drop the FTC case. Meta declined to confirm these reports but issued a statement asserting that the FTC’s actions defy logic, given that the acquisitions had been approved more than a decade ago.
The case has also raised concerns about political influence over independent regulatory bodies, especially after President Trump moved to fire two FTC commissioners in March. Rebecca Kelly Slaughter and Alvaro Bedoya, both Democrats, have accused the president of using these firings as a means of intimidation, claiming that those who do not align with his political allies may be removed from office.
This case is just one piece of the broader antitrust landscape currently unfolding in the U.S. As the Department of Justice's case against Google continues, many experts believe that the Meta trial will be a significant test of the government’s ability to break up monopolistic companies.
Experts like Laura Phillips-Sawyer, an associate professor of business law at the University of Georgia, predict that the FTC faces an uphill battle. "Compared to online search, there’s more competition in the personal network services space that Meta operates in," Phillips-Sawyer said. “The FTC has a long road ahead before the divestiture of Instagram or WhatsApp is even on the table.”
As the trial progresses, the future of Meta and its prominent acquisitions is uncertain, with the potential for far-reaching consequences in the tech industry.