Meta Wins Antitrust Lawsuit Challenging Instagram & WhatsApp Acquisitions
WASHINGTON D.C. – Meta Platforms, parent company of Facebook, has secured a victory in an antitrust lawsuit brought by U.S.regulators seeking to force the sale of Instagram and WhatsApp. Judge James Boasberg of the DC Federal District Court ruled on January 18, 2024, that the Federal Trade Commission (FTC) failed to demonstrate Meta holds a monopoly position.
The FTC initially filed the lawsuit in 2020, alleging that Facebook’s acquisitions of Instagram in 2012 and WhatsApp in 2014 stifled competition. After an initial dismissal due to insufficient evidence, the FTC refiled the suit in August 2021, refining its analysis of market share and barriers to entry.
During the trial, the FTC argued that Facebook dominated the social media market, defining it as encompassing Facebook, Instagram, Snapchat, and MeWe, and also competed in an “entertainment market” with TikTok and YouTube. The FTC sought to compel Meta to divest Instagram and WhatsApp as a remedy for alleged monopolistic practices.
Meta countered that it competes within a broader market that includes TikTok and youtube. Judge Boasberg agreed, stating in the 89-page ruling, “The FTC alleges that Meta acquired Instagram in 2012 and WhatsApp in 2014 and maintained its monopoly position through anti-competitive acquisitions, but this has not been proven.” The court found that users of Facebook and Instagram, similar to those on TikTok and YouTube, dedicate significant time to watching videos, placing all four apps within the same competitive landscape. Consequently, the court resolute Meta’s market share did not meet the threshold for a monopoly.
“Authorities must prove that Meta maintains such power today, irrespective of whether it exercised monopoly power in the past,” Judge Boasberg wrote.
The FTC retains the option to appeal the court’s decision. The New York times described the ruling as “an crucial victory for big tech companies.”
