The U.S. Federal Trade Commission (FTC) is suing Meta Platforms, the parent of Facebook, over claims it illegally built a monopoly by acquiring Instagram in 2012 and WhatsApp in 2014, Reuters reported on Monday. Here is all you need to know about the high-stakes case unfolding in Washington:
What’s the Case About?
The case was first filed in 2020 during Donald Trump’s first term as president. In its filing, the FTC alleged that Meta bought these companies to neutralize emerging competition and maintain dominance in social networking.
What Does the FTC Want?
- Now, the FTC is seeking to force Meta to break up, potentially selling off Instagram and WhatsApp. “The Trump-Vance FTC could not be more ready for this trial… We are blessed with some of the most hardworking and intelligent lawyers in the country who are working around the clock”, FTC spokesperson Joe Simonson said, according to Reuters.
- The FTC has claimed that Meta holds a monopoly on platforms where users connect with friends and family, arguing that platforms like Snapchat and MeWe are Meta’s only real competitors.
- Apps like X (formerly Twitter), TikTok, YouTube, and Reddit aren’t considered interchangeable for this purpose.
How Has Meta Responded?
Meta has strongly opposed the lawsuit, calling it a threat to innovation and investment. In a blog post on Sunday, Meta’s Chief Legal Officer Jennifer Newstead wrote, “It’s absurd that the FTC is trying to break up a great American company at the same time the Administration is trying to save Chinese-owned TikTok.”
Meta, on its part, has said these acquisitions benefited users and are no longer monopolistic, citing growing competition from:
- TikTok (ByteDance)
- YouTube (Google) and
- Apple’s iMessage
According to the report, Meta will likely highlight the increase in traffic during TikTok’s temporary U.S. shutdown as proof of competition.
Who Will Testify?
Meta CEO Mark Zuckerberg is expected to take the stand, where he’ll be questioned about internal emails suggesting:
- Instagram was bought to remove competition.
- Concerns that WhatsApp could evolve into a rival social network.
What Happens Next?
Trial started Monday in Washington and is expected to run until July.
If the FTC wins, a second trial would determine remedies, such as forcing Meta to divest Instagram or WhatsApp, the report suggests.
Why Does This Matter to Meta?
Instagram is a massive revenue driver for Meta, according to advertising research firm Emarketer, which had, in its December forecast, pegged $37.13 billion in revenue generation for the Facebook parent company this year, a little over half of Meta’s American ad revenue.
It reportedly brings in more revenue per user than any other platform—including Facebook,
WhatsApp, on the other hand, is Meta’s most-used app and central to its future business messaging strategy.
