Meta , the tech giant behind Facebook, Instagram, and WhatsApp, has requested a federal judge to dismiss the Federal Trade Commission’s (FTC) high-profile antitrust case, just as the trial approaches a critical phase. According to the New York Post, the case, which began in early April, represents one of the most significant regulatory challenges faced by Meta in its history, potentially resulting in the breakup of the company’s social media empire.
Meta's move to dismiss the case comes after the FTC rested its side of the argument, asserting that the company holds an illegal monopoly over the social networking market, particularly those platforms focused on friends-and-family connections. Meta, however, argues that the FTC's case is based on a flawed market definition and ignores the intense competition it faces from newer platforms like TikTok, YouTube, and Elon Musk’s X (formerly Twitter).
Meta's legal push to dismiss the FTC case
In a court filing late Thursday, Meta reiterated its stance that the FTC has failed to meet the legal standards required to prove its antitrust allegations. The company’s legal team argues that the FTC has fundamentally mischaracterized the social media market, claiming that the agency's definition is overly narrow and excludes significant competitors.
“After five weeks of trial, it is clear that the FTC has failed to meet the legal standard required under antitrust law,” a Meta spokesperson said in a statement on Friday. “Regardless, we will present our case to show what every 17-year-old in the world knows: Instagram competes with TikTok (and YouTube and X and many other apps).”
Meta claims that it faces substantial competition from a wide range of digital platforms, including short-video giant TikTok, video-sharing platform YouTube, and Elon Musk’s X. These platforms, Meta argues, all compete for user engagement, advertising revenue, and market share, undercutting the FTC’s claim that Meta has maintained an unlawful monopoly.
FTC’s case against Meta: A 'buy or bury' strategy
The FTC’s antitrust lawsuit, which was first filed in December 2020, centers on Meta’s acquisitions of Instagram in 2012 and WhatsApp in 2014. The agency claims that Meta pursued a deliberate “buy or bury” strategy, acquiring these fast-growing competitors to neutralize potential threats to its dominant position in the social networking market.
In its filing, the FTC pointed to internal Meta communications as evidence of this strategy. This includes a 2012 email from Meta CEO Mark Zuckerberg suggesting that buying Instagram would “neutralize a competitor.” The FTC further argues that these acquisitions reduced consumer choice and stifled innovation, limiting competition in the rapidly evolving social media industry.
The FTC's case aims to convince U.S. District Judge James Boasberg to order Meta to spin off Instagram and WhatsApp, effectively dismantling the company's integrated social media ecosystem.
Meta’s defense strategy and internal turmoil
Meta's defense in the trial has focused on presenting itself as a company that supports innovation and benefits consumers. In its Thursday filing, the company argued that its acquisition of Instagram enabled massive growth, which in turn delivered significant benefits to users.
“Meta’s acquisition of Instagram enabled massive growth – with correspondingly massive benefits for US consumers,” the company stated in its court filing.
However, the trial has also brought to light internal documents that may complicate Meta’s defense. For instance, a 2018 email from an unnamed Instagram executive warned that "fake engagement could be in the range of 40%," potentially undermining Meta's claims about the platform’s integrity and user trust.
Mark Zuckerberg takes the stand as FTC trial continues
Mark Zuckerberg himself was the first witness called by the FTC as the trial opened, highlighting the personal stakes for the Meta CEO. During his testimony, Zuckerberg sought to portray Meta as a company facing fierce competition, rather than a monopoly crushing potential rivals.
Earlier in the trial, Instagram co-founder Kevin Systrom testified that he felt Zuckerberg viewed Instagram’s rapid growth as a potential threat to Facebook’s dominance after the acquisition, further fueling the FTC’s argument that Meta's mergers were designed to stifle competition.
What comes next for Meta
The 10-week nonjury trial, which is expected to conclude in June, will be followed by final briefs from both the FTC and Meta. If Judge Boasberg sides with the FTC, a second trial will be held to determine appropriate remedies, potentially including the forced divestiture of Instagram and WhatsApp.
Meta will continue presenting its defense when the trial resumes on Monday. The company’s attempt to dismiss the case outright remains a long shot, as the judge may choose to let the case proceed to its scheduled conclusion before issuing a ruling.
Also read | AI software development agent Codex released by OpenAI in ChatGPT
Meta's move to dismiss the case comes after the FTC rested its side of the argument, asserting that the company holds an illegal monopoly over the social networking market, particularly those platforms focused on friends-and-family connections. Meta, however, argues that the FTC's case is based on a flawed market definition and ignores the intense competition it faces from newer platforms like TikTok, YouTube, and Elon Musk’s X (formerly Twitter).
Meta's legal push to dismiss the FTC case
In a court filing late Thursday, Meta reiterated its stance that the FTC has failed to meet the legal standards required to prove its antitrust allegations. The company’s legal team argues that the FTC has fundamentally mischaracterized the social media market, claiming that the agency's definition is overly narrow and excludes significant competitors.
“After five weeks of trial, it is clear that the FTC has failed to meet the legal standard required under antitrust law,” a Meta spokesperson said in a statement on Friday. “Regardless, we will present our case to show what every 17-year-old in the world knows: Instagram competes with TikTok (and YouTube and X and many other apps).”
Meta claims that it faces substantial competition from a wide range of digital platforms, including short-video giant TikTok, video-sharing platform YouTube, and Elon Musk’s X. These platforms, Meta argues, all compete for user engagement, advertising revenue, and market share, undercutting the FTC’s claim that Meta has maintained an unlawful monopoly.
FTC’s case against Meta: A 'buy or bury' strategy
The FTC’s antitrust lawsuit, which was first filed in December 2020, centers on Meta’s acquisitions of Instagram in 2012 and WhatsApp in 2014. The agency claims that Meta pursued a deliberate “buy or bury” strategy, acquiring these fast-growing competitors to neutralize potential threats to its dominant position in the social networking market.
In its filing, the FTC pointed to internal Meta communications as evidence of this strategy. This includes a 2012 email from Meta CEO Mark Zuckerberg suggesting that buying Instagram would “neutralize a competitor.” The FTC further argues that these acquisitions reduced consumer choice and stifled innovation, limiting competition in the rapidly evolving social media industry.
The FTC's case aims to convince U.S. District Judge James Boasberg to order Meta to spin off Instagram and WhatsApp, effectively dismantling the company's integrated social media ecosystem.
Meta’s defense strategy and internal turmoil
Meta's defense in the trial has focused on presenting itself as a company that supports innovation and benefits consumers. In its Thursday filing, the company argued that its acquisition of Instagram enabled massive growth, which in turn delivered significant benefits to users.
“Meta’s acquisition of Instagram enabled massive growth – with correspondingly massive benefits for US consumers,” the company stated in its court filing.
However, the trial has also brought to light internal documents that may complicate Meta’s defense. For instance, a 2018 email from an unnamed Instagram executive warned that "fake engagement could be in the range of 40%," potentially undermining Meta's claims about the platform’s integrity and user trust.
Mark Zuckerberg takes the stand as FTC trial continues
Mark Zuckerberg himself was the first witness called by the FTC as the trial opened, highlighting the personal stakes for the Meta CEO. During his testimony, Zuckerberg sought to portray Meta as a company facing fierce competition, rather than a monopoly crushing potential rivals.
Earlier in the trial, Instagram co-founder Kevin Systrom testified that he felt Zuckerberg viewed Instagram’s rapid growth as a potential threat to Facebook’s dominance after the acquisition, further fueling the FTC’s argument that Meta's mergers were designed to stifle competition.
What comes next for Meta
The 10-week nonjury trial, which is expected to conclude in June, will be followed by final briefs from both the FTC and Meta. If Judge Boasberg sides with the FTC, a second trial will be held to determine appropriate remedies, potentially including the forced divestiture of Instagram and WhatsApp.
Meta will continue presenting its defense when the trial resumes on Monday. The company’s attempt to dismiss the case outright remains a long shot, as the judge may choose to let the case proceed to its scheduled conclusion before issuing a ruling.
Also read | AI software development agent Codex released by OpenAI in ChatGPT
