Meta faces trial in the US over a Federal Trade Commission (FTC) lawsuit aimed at breaking up the social media giant. The FTC argues that Meta’s acquisitions of Instagram and WhatsApp were part of a strategy to stifle competition. A Washington judge denied Meta’s attempt to dismiss most of the case, pushing forward one of several significant antitrust cases against major tech firms.
Judge Upholds Key FTC Claims Against Meta
US District Judge James Boasberg allowed the FTC’s main claim to proceed, asserting that Meta, previously Facebook, illegally maintained its monopoly by acquiring potential rivals rather than competing with them in the mobile market. Meta’s purchases of Instagram in 2012 and WhatsApp in 2014 are central to the FTC’s argument, with claims that these acquisitions aimed to eliminate competitive threats in the growing social media sector. Boasberg, however, dismissed a separate claim that Meta restricted third-party developers’ platform access if they did not agree to avoid competing with Meta’s core services.
Meta and FTC’s Response to the Trial Decision
Meta spokespersons expressed confidence that the trial would reveal how acquiring Instagram and WhatsApp has benefited consumers and competition. Meanwhile, FTC spokesperson Douglas Farrar described the case as a “bipartisan effort” initiated during the Trump administration and refined under Biden to reduce Meta’s monopoly power and foster a competitive social media landscape. Judge Boasberg ruled that Meta could not argue that the WhatsApp acquisition boosted competition with companies like Apple and Google, limiting Meta’s defence options in court.
A detailed order from Boasberg is expected soon, following redactions for sensitive commercial details.
Big Tech Faces Increased Antitrust Pressure
This FTC lawsuit is one of five major cases targeting Big Tech monopolies, with the US Department of Justice and FTC actively pursuing similar claims against Amazon, Apple, and Google. Google, for example, recently faced a separate ruling stating it unlawfully limited competition in online search. No trial date has been set yet for Meta’s case, as the tech industry awaits further developments in this sweeping wave of regulatory scrutiny.
with inputs from Reuters