Meta Faces Landmark Antitrust Trial that May Require Divestiture of Instagram and WhatsApp

As the antitrust trial against Meta begins, the FTC argues that Instagram and WhatsApp were acquired to stifle competition. With potential high-stakes outcomes, the case could test the limits of antitrust enforcement and corporate mergers in the tech industry.

The Federal Trade Commission (FTC) is initiating a major antitrust trial against Meta, the parent company of Facebook, in Washington. The agency alleges that Meta, having already owned Facebook, purchased Instagram in 2012 and WhatsApp in 2014 to eliminate competition, thereby establishing a monopoly in the market. Despite the FTC's earlier approval of these acquisitions, it has committed to monitoring their implications. If the FTC succeeds, Meta CEO Mark Zuckerberg might be compelled to sell Instagram and WhatsApp.

Meta asserts confidence in winning the case, intending to argue that users have benefited from the enhancements brought by its ownership of Instagram. Law professor Rebecca Haw Allensworth notes that Zuckerberg's admissions, such as his preference to buy competitors rather than engage in competition, could be pivotal in the trial. Conversely, Meta is likely to claim that the acquisitions have positively influenced Instagram's development.

Testimony from Zuckerberg and the company’s former COO is expected, with the trial anticipated to last for several weeks. The case, FTC v Meta, is rooted in political undercurrents that emerged during Donald Trump’s first administration, and shifting political dynamics could further complicate proceedings. Several reports indicate Zuckerberg's lobbying efforts to influence the FTC’s stance.

The FTC's recent leadership changes also cast a shadow over the trial. The actions taken by President Trump to dismiss two Democratic FTC commissioners signal political maneuvers that could impact the agency's independence. The ongoing discourse highlights concerns regarding political interference in antitrust investigations.

In addition to the trial against Meta, another significant antitrust case, USA v Google, is proceeding. The Department of Justice previously made inroads in establishing Google's monopoly in online search, with a push for its segregation. However, experts suggest that the FTC's case against Meta may face greater challenges, owing to the existence of more competitors in the social media space. Meta downplays the FTC's concerns, stating that Instagram, Facebook, and WhatsApp robustly compete with various other platforms like TikTok and YouTube.