Meta Prevails in Antitrust Case, Avoiding Forced Divestiture of Instagram and WhatsApp
WASHINGTON D.C. – Facebook parent company Meta has won a significant legal battle against the Federal Trade Commission (FTC), averting a potential order to sell off Instagram and WhatsApp. A federal court ruled today that Meta is not currently a monopoly in the social media market, dismissing the FTC’s claims that the acquisitions of Instagram in 2012 and WhatsApp in 2014 were anti-competitive.
The FTC argued that these acquisitions granted Meta an illegal monopoly for the past decade. Though, Judge James Boasberg resolute the agency failed to demonstrate that Meta currently holds a monopoly position. “Regardless of whether Meta previously had a monopoly position or not, the authority must show that the company still has such a position now,” Judge Boasberg wrote in the decision. “The court’s ruling today establishes that the FTC has not done so.”
The lawsuit, initially filed in 2020, centered on Meta CEO Mark Zuckerberg’s previously stated business strategy of acquiring potential competitors – described as “it is better to buy than to compete.” The FTC maintained that these acquisitions stifled competition and innovation in the social media landscape.
However, the court noted considerable changes in the social media environment since the case began. Notably,the rise of TikTok - a platform not even mentioned in earlier stages of the legal proceedings – was highlighted as a key factor. the judge indicated TikTok now represents Meta’s “toughest rival,” undermining the argument that Meta enjoys unchallenged dominance.
