Meta’s high-profile antitrust trial begins Monday in Washington, marking a significant milestone in the Federal Trade Commission’s nearly six-year investigation into the company’s acquisitions of Instagram and WhatsApp. At the heart of the case is whether these purchases violated competition laws, potentially leading to a major restructuring of Meta’s $1.4 trillion advertising empire.
The trial, expected to last between seven and eight weeks, will see opening statements from both the FTC and Meta’s legal teams in front of U.S. District Judge James Boasberg. The case will be heavily scrutinized, with key witnesses, including Meta CEO Mark Zuckerberg, former COO Sheryl Sandberg, and Instagram head Adam Mosseri, set to testify.
The FTC argues that Meta’s 2012 purchase of Instagram and its 2014 acquisition of WhatsApp were not simply business decisions but part of a strategy to eliminate competition and reinforce its monopoly over the social media market. The government claims Meta used a “buy or bury” approach, acquiring potential competitors or forcing them out of business. Evidence to be presented includes a 2012 email from Zuckerberg in which he stated that buying Instagram was meant to “neutralize a potential competitor,” a move the FTC argues violates antitrust laws.
In response, Meta contends that it is being unfairly targeted for its success and innovation. The company asserts that both acquisitions were approved by regulators at the time, and that the social media landscape has changed significantly since then, with new rivals like TikTok, X, and Snapchat challenging its dominance. Meta also argues that the FTC’s actions undermine the finality of deals cleared over a decade ago.
The FTC’s proposed remedy is for Meta to divest Instagram and WhatsApp, allowing smaller competitors to gain a foothold in the market. The government believes such a move would foster more competition, improve service quality, and address concerns about Meta’s market power and privacy practices. However, Meta argues that a breakup would lead to a less integrated experience for users, potentially degrading the services it offers.
The case also carries political undertones. It was initiated during the Trump administration, when Zuckerberg faced criticism from the former president. Although the two have since eased their public confrontation, Zuckerberg has taken steps to align with Trump’s policies, including donations and legal settlements. Despite speculation that a settlement might be reached, the trial is expected to proceed, with the FTC determined to press its case.
While a settlement during the trial remains a possibility, legal experts suggest it is unlikely, given the FTC’s strong stance. The outcome of this trial could have profound implications for Meta and the broader tech industry.
