Meta is set to face an antitrust lawsuit from the U.S. Federal Trade Commission (FTC), which accuses the company of stifling competition and dominating the social media market through its acquisitions of Instagram and WhatsApp. The court may order Meta to sell these assets, according to The Verge.
The FTC initially filed the lawsuit in 2020, claiming Meta acquired competitors Instagram and WhatsApp to suppress competition. However, D.C. District Court Judge James Boasberg dismissed the case in 2021. The FTC then submitted an amended complaint, leading to the case’s reopening. In early 2023, Meta attempted to have the lawsuit dismissed again, but Boasberg sided with the FTC. Still, he rejected claims that Meta acted in bad faith by restricting access to its API on the condition that developers would not compete with its apps.
Meta Defends Instagram and WhatsApp Acquisitions
The FTC must now prove that Meta’s acquisitions of Instagram and WhatsApp harmed both competition and consumers. Meta spokesperson Christopher Sgro expressed confidence that the company will prevail in court. Speaking to The Verge, Sgro stated:
“The FTC reviewed and approved these acquisitions more than a decade ago, and despite overwhelming evidence that our services compete fairly with YouTube, TikTok, X, Apple’s iMessage, and many others, the FTC continues to insist that the acquisitions were unlawful.”
Sgro further emphasized that Meta believes the purchases were ultimately “good for users.”
Political Context and Future Developments
The FTC’s antitrust case began under Donald Trump’s presidency. However, Trump’s administration is expected to adopt a more lenient stance on mergers and acquisitions. NIXSolutions adds that Meta CEO Mark Zuckerberg and other tech leaders have reportedly started improving their relationship with Trump, who may remove FTC Chair Lina Khan if re-elected.
The outcome of this lawsuit could significantly impact Meta’s operations and the broader tech industry. For now, we’ll keep you updated as the case develops.