Meta Platforms Faces Antitrust Trial

April 15, 2025

Meta Platforms Inc. is undergoing an antitrust trial that could lead to the separation of Instagram and WhatsApp from Meta. The trial is a landmark challenge to the dominance of Big Tech and is spearheaded by the U.S. Federal Trade Commission (FTC). The FTC claims that Meta’s acquisitions were aimed at eliminating competition and establishing a monopoly in the social media landscape.

Background of the Case

The FTC filed the lawsuit against Meta in 2020 during Donald Trump’s presidency. The agency alleges that Meta, previously known as Facebook, acquired Instagram in 2012 and WhatsApp in 2014 to quash competition. These purchases were seen as strategies to maintain Meta’s dominance in social networking.

FTC’s Objectives

The FTC is seeking to compel Meta to divest Instagram and WhatsApp. The agency argues that these acquisitions have allowed Meta to monopolise the market where users connect with friends and family. The FTC’s stance is that platforms like Snapchat and MeWe are not adequate competitors to Meta’s offerings.

Meta’s Defence

Meta has strongly opposed the FTC’s claims. The company argues that its acquisitions have encouraged innovation and competition. Meta’s Chief Legal Officer has described the lawsuit as detrimental to American innovation. The company points to the rise of competitors such as TikTok and YouTube as evidence that its market position is not monopolistic.

Market Definition Challenges

A major challenge for the FTC is defining the competitive market. The agency’s narrow definition excludes competitors like TikTok and YouTube. Experts believe this could hinder the FTC’s ability to prove that Meta holds a monopoly in the social media market.

Implications of the Trial

The trial’s outcome could have far-reaching implications for Meta. If the FTC prevails, Meta could be forced to sell off Instagram, which currently generates over half of its U.S. ad revenue. This revenue is crucial for Meta, especially as it attempts to appeal to younger demographics who are moving away from Facebook.

Future of Antitrust Regulations

This case marks the ongoing tension between traditional antitrust laws and modern digital markets. Legal experts suggest that the trial will set a precedent for how antitrust laws are applied in the rapidly evolving tech landscape. The outcome could influence future regulatory actions against other tech giants like Google and Amazon.

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