Meta Faces FTC Antitrust Trial: What’s at Stake for the Social Media Giant?
TL/DR –
The antitrust case brought by the Federal Trade Commission (FTC) against Meta, the parent company of Facebook, Instagram, and WhatsApp, begins this week in Washington, DC. The case is the result of a six-year-long investigation into whether Meta violated competition laws by acquiring Instagram and WhatsApp. The FTC is arguing that Meta employed a “buy or bury” strategy to eliminate its competition via these acquisitions. If found guilty, Meta could be forced to spin off Instagram and WhatsApp into separate companies.
Mark Zuckerberg, the CEO of Meta, at President Trump’s inauguration at the U.S. Capitol on Jan. 20, 2025.
Pool/Getty Images/Getty Images North America
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The landmark FTC antitrust case against Meta begins Monday. The six-year investigation examines if Meta violated competition laws through Instagram and WhatsApp acquisitions. The ruling could impact Meta’s ad business and require divestment of popular services.
What is the FTC’s case against Meta?
The FTC posits Meta’s strategy to acquire Instagram and WhatsApp was to obliterate competition and monopolize the social media market. Meta’s alleged “buy or bury” strategy, according to the FTC, is unlawfully anti-competitive.
What remedy does the FTC want?
FTC advocates for Meta’s divestment of Instagram and WhatsApp to rekindle competition, arguing this could enhance service quality and privacy protection.
How is Meta expected to respond in court?
Meta refutes allegations, arguing they are being penalized for successful innovation and asserting that regulatory approval was received for Instagram and WhatsApp acquisitions. Meta contends the social media landscape has evolved, with competition from TikTok, Snapchat, X by Elon Musk, and others.
Impact of Meta’s possible break-up on Facebook, Instagram and WhatsApp users?
The FTC argues increased competition can improve service quality. Meta counters that a break-up could deteriorate app integration and worsen user experience.
How does CEO Mark Zuckerberg’s relationship with Trump influence this trial?
This case started under the Trump administration in December 2020. During Trump’s presidency, Zuckerberg was seen aligning with Trump’s agenda, including ending Facebook and Instagram’s fact-checking program and reducing diversity programs.
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