Facebook parent Meta Platforms is facing an antitrust trial over its ownership of popular social media and messaging apps Instagram and WhatsApp, respectively. At the beginning of a high-stakes trial, an attorney for the US Federal Trade Commission (FTC) said that the acquisition of nascent rivals Instagram and WhatsApp deprived consumers of the potential benefits these companies would have offered as independent entities. The trial, filed during President Donald Trump's first term, centers on the FTC's claim that Meta strategically bought the companies roughly a decade ago after its attempts to compete in the social media market had failed.
What US FTC said about Meta’s ownership of WhatsApp and Instagram
According to a report by the news agency Reuters, FTC attorney Daniel Matheson said that Meta’s ownership of Instagram and WhatsApp, “established entry barriers that for more than a decade protected Meta's dominance."
"Consumers do not have reasonable alternatives they can turn to," Matheson added.
US antitrust enforcers are seeking to investigate these deals, arguing that the acquisitions eliminated competition among social media platforms where users connect with friends and family. The FTC is also pushing for a restructuring of Meta's business, potentially forcing the company to sell off key assets like Instagram and WhatsApp.
This case represents a major threat to Meta, as Instagram alone is estimated to generate about half of the company's US advertising revenue. The trial also serves as a test of the current administration's commitment to regulating Big Tech companies.
FTC spokesperson Joe Simonson has also said that the Trump-Vance FTC is as prepared as possible for the trial, emphasising that its legal team has been working tirelessly around the clock to get ready, the report adds.
However, since Trump’s re-election, Meta has actively sought the president's influence with moves like discarding content moderation policies that Republicans labeled as censorship and donating $1 million to Trump's inauguration. Meta CEO Mark Zuckerberg’s multiple recent visits to the White House also highlight the company's ongoing effort to engage with and potentially sway the political climate.
What Meta said about the trial
Commenting on the trial, Meta Chief Legal Officer Jennifer Newstead said that the case was weak and discourages tech investment.
In a blog post, 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."
What US FTC said about Meta’s ownership of WhatsApp and Instagram
According to a report by the news agency Reuters, FTC attorney Daniel Matheson said that Meta’s ownership of Instagram and WhatsApp, “established entry barriers that for more than a decade protected Meta's dominance."
"Consumers do not have reasonable alternatives they can turn to," Matheson added.
US antitrust enforcers are seeking to investigate these deals, arguing that the acquisitions eliminated competition among social media platforms where users connect with friends and family. The FTC is also pushing for a restructuring of Meta's business, potentially forcing the company to sell off key assets like Instagram and WhatsApp.
This case represents a major threat to Meta, as Instagram alone is estimated to generate about half of the company's US advertising revenue. The trial also serves as a test of the current administration's commitment to regulating Big Tech companies.
FTC spokesperson Joe Simonson has also said that the Trump-Vance FTC is as prepared as possible for the trial, emphasising that its legal team has been working tirelessly around the clock to get ready, the report adds.
However, since Trump’s re-election, Meta has actively sought the president's influence with moves like discarding content moderation policies that Republicans labeled as censorship and donating $1 million to Trump's inauguration. Meta CEO Mark Zuckerberg’s multiple recent visits to the White House also highlight the company's ongoing effort to engage with and potentially sway the political climate.
What Meta said about the trial
Commenting on the trial, Meta Chief Legal Officer Jennifer Newstead said that the case was weak and discourages tech investment.
In a blog post, 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."
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