The U.S. FTC is seeking to prove its claim that Meta has engaged in anti-competitive behavior over the years to illegally maintain its monopoly in its personal social networking (PSN) market [File] |Photo source: AFP
Story so far: Nearly five years after the Federal Trade Commission sued Facebook for its so-called monopoly, CEO Mark Zuckerberg defended the company’s acquisition of Whatsapp and Instagram on Monday, which defended the company’s acquisition, which was purchased a decade ago.
What is a meta-antor-trust case?
“Kingdom”, “Empire”, “Titan”, “Giant” – These words are commonly used to describe Meta, which owns Facebook, Instagram, Threads and WhatsApp, in addition to acquiring more than 90 other businesses.
In such antitrust cases, the FTC sought to prove its claim that the Monkey had carried out anti-competitive behavior over the years to illegally maintain a monopoly in the personal social network (PSN) market.
“The complaint alleges that Facebook has been involved in the system’s strategies, including its 2012 acquisition of emerging rival Instagram, its 2014 acquisition of mobile messaging app WhatsApp and anti-competitive conditions imposed on software developers to remove the threat to its monopoly,” the FTC said.
If the FTC wins, META could be forced to strip away two major applications firmly embedded in its social media ecosystem.
It is important to note that the FTC’s complaint against META was initiated during the first term of U.S. President Donald Trump and actively pursued during his tenure as former President Joe Biden, under the leadership of FTC Chairman Lina Khan, before returning to current FTC Chairman Andrew Ferguson. This case includes American lawmakers and bureaucrats, otherwise they will be divided by partisanship.
What is Meta’s main argument against the FTC?
Meta (earlier Facebook) bought Instagram for $1 billion in 2012 and WhatsApp for $19 billion in 2014. To successfully demonstrate that Meta has an illegal monopoly in the personal social networking (PSN) market, the FTC must first define the market and then defend its allegations. However, Meta believes the FTC’s definition of the market is too small and has missed other major apps that compete with Instagram and WhatsApp.
“The FTC’s lawsuit against META ignores reality. In an attempt to win the case, the FTC claims that our only competitors are Snapchat and an app called Mewe.”
“The evidence of the trial will show that every 17-year-old in the world knows: Instagram competes with Tiktok (and YouTube and X and many other apps)” the company said.
Meta further blows up the FTC in an attempt to break “a great American company” while the government is trying to save the Chinese-owned Tiktok.
During the trial, Meta’s legal team showed how Tiktok, YouTube shorts and Instagram Reels approached the same user interface. The slideshow further highlights how users switch between meta-apps and alternatives such as shorts, Snapchat, Tiktok, Twitter, and even messaging apps.
Facebook parents insist that this is not a monopoly, but that its acquisitions are competitive and produce “extraordinary efficiency.”
Meta highlights “billions of dollars and millions of hours of investment”, and after its acquisition, it can improve Instagram and WhatsApp to drive its growth and bring its features to more users for free.
What role did Mark Zuckerberg play in Meta’s antitrust trial?
As Trump’s popularity surged before the 2024 U.S. presidential election, Zuckerberg tried to build closer ties with Trump and his conservative voter base. He had a meal with Trump, donated $1 million to the 47th Presidential Inauguration Fund, attended the inauguration ceremony, criticized his company’s fact-checking policy, reprocessed Meta’s commitment to diversity, and even responded to the key points of the right-wing conversation. He also bought a luxury home in Washington, D.C. to keep his distance from the White House, reportedly meeting with Trump before the Met Antitrust trial.
Despite these tactical attempts, Zuckerberg had to appear in court, where he baked his early plans for Instagram and asked for comment on past subjects about the app, in which he expressed concern about its popularity and even considered strategies to beat Instagram.
Did the Federal Trade Commission have sued meta before?
Meta and the US FTC have a tricky history. In 2019, the FTC violated its 2012 FTC order with a “record-breaking” fine of $5 billion and misled its users’ data privacy.
In 2023, Meta sued the FTC for its proposed changes to the regulator to change the way it processes user data, including personal information belonging to children.
Can Metal be forced to strip Instagram and WhatsApp?
It’s hard to say at this point, as the FTC has been working hard to bring the case to where it is now. The initial 2020 complaint was dismissed in 2021 by U.S. District Court Judge James Boasberg, who was not convinced by the FTC’s allegations. Despite the complaint being revised and resubmitted more details before being cleared during Khan’s tenure, Boasberg warned that the agency may still be difficult to prove its allegations.
In an April 14 FOX Business interview, Ferguson, current FTC chairman, said the agency believed Meta was a monopoly and tried to prove it in court. On the other hand, he also said he would help implement Trump’s “deregulation” agenda when the merger was brought in.
While the outcome of the meta-antorised trust case is unclear, it is clear that fears about the huge impact of Meta on the digital landscape unite our executors regardless of their party loyalty.
publishing – April 19, 2025 08:32 pm ist
