Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, is heading to court in a historic antitrust trial that could force the tech giant to unwind its most important acquisitions — Instagram and WhatsApp. The trial, starting Monday, marks a major legal battle in the U.S. government’s push to regulate Big Tech and rein in monopolistic power.
FTC accuses Meta of “Buy, Not Compete” strategy
Filed in 2020 under the Trump administration, the Federal Trade Commission’s (FTC) lawsuit alleges that Meta (then Facebook) followed a deliberate strategy to stifle competition by acquiring emerging threats instead of competing with them. The FTC cited CEO Mark Zuckerberg’s 2008 sentiment, “It is better to buy than compete,” as a reflection of Meta’s anti-competitive approach.
According to the complaint, Facebook acquired Instagram in 2012 for $1 billion and WhatsApp in 2014 for $22 billion, not to innovate, but to neutralize potential rivals — especially as users shifted from desktops to mobile platforms.
Meta pushes b: “FTC is ignoring today’s reality”
Meta has strongly rejected the claims, saying the FTC is ignoring the current competitive landscape.
“The evidence at trial will show what every 17-year-old in the world knows: Instagram, Facebook and WhatsApp compete with TikTok, YouTube, X (formerly Twitter), iMessage and many others,” the company said.
It also argues that the FTC had already reviewed and cleared these acquisitions over a decade ago, warning that this lawsuit sets a dangerous precedent where “no deal is ever truly final.”
Narrow market definition is a challenge for the FTC
Legal experts say the FTC’s biggest hurdle will be proving that Meta currently holds monopoly power in a narrowly defined social media market — one that excludes giants like TikTok, YouTube, and Apple’s iMessage.
Judge James Boasberg, who is overseeing the case, has shown skepticism toward the FTC’s narrow definition but has allowed the trial to move forward, signaling an openness to hear detailed arguments.
Instagram’s Pivotal Role in Meta’s Future
The stakes for Meta are massive. Instagram alone now contributes more than 50 per cent of Meta’s ad revenue in the U.S.
According to eMarketer analyst Jasmine Enberg, “Instagram has picked up the slack for Facebook, especially among younger users, and is the go-to platform for advertisers.” If the court rules in the FTC’s favor and Meta is forced to divest Instagram, it could severely impact the company’s business model.
A broader crackdown on big tech
This trial is part of a broader crackdown on tech monopolies. Google faces a similar antitrust lawsuit, with the remedy phase of its trial beginning April 21. Amazon is also under scrutiny.
“This is about applying 19th-century laws to 21st-century markets,” said antitrust attorney Paul Swanson. “And this trial will be a key test of whether antitrust law can evolve to meet the challenges of today’s fast-moving tech landscape.”