Meta Platforms, the parent company of Facebook, is to face trial as the US Federal Trade Commission accused it of operating with anti-competitive practices. On Wednesday, a judge in Washington ruled that Meta’s motion to dismiss the case must be denied. The FTC argues that the acquisitions of Instagram in 2012 and WhatsApp in 2014 by Meta were actually intended to suppress nascent competition in the social media market and not to inspire innovation or enhance service.
Anti-Competitive Conduct by FTC
The FTC’s suit, filed in 2020 under the Trump administration, claims that Meta overpaid to acquire Instagram and WhatsApp to neutralize a potential threat to its position as the dominant player in the social media space. According to the agency, the acquisitions were aimed at eliminating a competitor or competitors in the growing mobile ecosystem rather than business synergies.
Judge James Boasberg has dismissed just one of the claims but ruled that case can proceed, indicating FTC’s claims on Instagram and WhatsApp will be put to test at the trial. A separate claim was dismissed by him relating Facebook’s alleged anti-competitive practices in restricting access to its platform for third-party app developers unless they agreed to not compete with Facebook’s core services.
The judge said, “We are confident that the evidence at trial will show that the acquisitions of Instagram and WhatsApp have been good for competition and consumers,” said a Meta spokesperson when referring to the ruling.
Antitrust Cases Against Big Tech
The case forms part of an emerging wave of antitrust cases against big tech companies. Besides Meta, the FTC and the U.S. End. The Department of Justice has also launched antitrust lawsuits against other tech giants, including Amazon, Apple, and Alphabet’s Google. However, in its case against Meta, the latter had raised points arguing that the conception of social media space by the FTC is too narrow and fails to acknowledge competition coming from other similar platforms, such as TikTok by ByteDance, YouTube by Google, and X formerly Twitter.
The judge also ruled that Meta may not make a defense at trial that it would be any better positioned against competitors Apple and Google from its acquisition of WhatsApp.
Statements from the FTC and Meta
FTl spokesman Douglas Farrar said of the case, “it is an example of a bipartisan effort to curb Meta’s monopoly power and restore competition to ensure freedom and innovation in the social media ecosystem.”.
Meta’s spokesman, on the other hand, said that company still insists the acquisitions of Instagram and WhatsApp are pro-competitive and good for consumers and competition and is confident that the evidence will show that at trial.
Hearings and Order Schedule with Trial Date
A final order by Judge Boasberg should also come soon after the exchange of redactions both sides of highly sensitive commercial information that would otherwise be publicly available. No date has been set for the trial.
Escalating Scrutiny of Big Tech
The case is one of the several major cases that regulators have filed to limit Big Tech companies and create fierce competition in the industry. In addition to Meta, others under antitrust legal suits are Amazon, Apple, and Google, charged with monopolistic behaviors that new reports indicate have lately seen intensified efforts by antitrust regulators to clip the wings of technological big firms.
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