FOLLOW US

Meta Platforms is at the center of a landmark monopoly trial in Washington, D.C., as the Federal Trade Commission (FTC) seeks to force a breakup of the tech giant over its past acquisitions of Instagram and WhatsApp.

The FTC alleges that Meta, formerly Facebook, unfairly stifled competition by purchasing rising competitors, effectively dominating the social media market.

Landmark Monopoly Trial Over Instagram and WhatsApp Purchases

The trial, held at the E. Barrett Prettyman U.S. District Court, marks a significant moment in the ongoing debate about Big Tech’s influence and market power.

It could have major implications for how future tech mergers are evaluated and challenged by federal regulators.

In court, the FTC presented a 2012 internal email from Zuckerberg to then-COO Sheryl Sandberg stating, “Instagram is growing so much faster than us that we had to buy them for $1 billion.”

At the time, Facebook was developing its own rival called Facebook Camera but struggled to gain traction.

“Many more times than not, when we've tried to build a new app, it hasn't gotten a lot of traction,” Zuckerberg said.

Zuckerberg Testifies: "Building a New App Is Hard"

Meta CEO Mark Zuckerberg took the witness stand for a second consecutive day to defend the company’s decisions to acquire Instagram in 2012 and WhatsApp in 2014.

Lawyers for the FTC questioned whether Meta could have developed its own products to compete instead of purchasing the competition.

"I'm sure we could have built an app," Zuckerberg admitted. "Whether it would have succeeded or not I think is a matter of speculation."

Meta Says Competition Is Fierce

In its defense, Meta argues that the social media market is highly competitive, pointing to the success of platforms like TikTok, YouTube, and X (formerly Twitter).

The company insists that its acquisitions were not anticompetitive but strategic investments in innovative technology.

https://usaherald.com/san-diego-earthquake-5-2-magnitude-quake-rattles-region/

Zuckerberg testified that Instagram was acquired for its advanced camera technology, not its social network features. 

However, Instagram has since grown to become one of Meta's most lucrative platforms. According to market research firm eMarketer, Instagram is projected to generate more than half of Meta’s U.S. advertising revenue by 2025.

The FTC is urging U.S. District Judge James Boasberg to rule that Meta’s acquisitions unfairly limited consumer choice and stifled innovation.

This landmark monopoly trial could impact all large tech companies. If Boasberg sides with the FTC, the case will move into a second phase to determine the appropriate remedies—potentially including a forced divestiture of Instagram or WhatsApp.

Other high-profile witnesses expected to testify in the weeks-long trial include former COO Sheryl Sandberg and Instagram co-founder Kevin Systrom.

Related: BBC Coverage of Meta Landmark Monopoly Case