Mark Zuckerberg’s Meta is facing a landmark antitrust case from the Federal Trade Commission (FTC), which accuses the company of stifling competition by acquiring potential rivals rather than innovating.
The trial, which starts on Monday, could force Meta to divest Instagram and WhatsApp, two of the most widely used social media platforms in the world.
Newsweek has contacted Meta and the FTC for comment via email.
The Context
The FTC is arguing that Meta acquired Instagram in 2012 and WhatsApp in 2014 to neutralize rising competition and maintain dominance over the social media industry, despite the fact that both purchases were cleared by federal regulators at the time.
Zuckerberg has reportedly made multiple trips to the White House in an effort to broker a settlement that would avert the trial, but the trial is commencing with no settlement in sight.
What To Know
Meta, known at the time as Facebook, acquired Instagram in 2012 and WhatsApp in 2014, making it one of the biggest social media companies in the world. Both acquisitions were reviewed and cleared by the FTC at the time.
However, the commission’s case, which was first filed in 2020, criticized Zuckerberg’s media company of accumulating rivals as a way of preventing any competition in the social media industry.
“Facebook’s actions to entrench and maintain its monopoly deny consumers the benefits of competition,” said Ian Conner, who was director of the FTC’s Bureau of Competition at the time of the filing.
“Our aim is to roll back Facebook’s anticompetitive conduct and restore competition so that innovation and free competition can thrive.”
In response to the trial, Zuckerberg has reportedly been visiting the White House in an attempt to reach a settlement before a decision is made.
The Wall Street Journal reported that Meta’s top representatives were lobbying President Donald Trump directly in a bid to prevent any breakup of its brands.
Trump and Zuckerberg have a complicated history, with the president being critical of the Silicon Valley CEO’s management of online censorship, which culminated in a ban from Meta platforms after the January 6 riots.
However, the two have reconciled to some degree. Zuckerberg donated to Trump’s inauguration fund and was present for his inauguration speech, along with other big names from Big Tech like Amazon founder Jeff Bezos.
What People Are Saying
A spokesperson for Meta said: “On Monday April 14, trial will begin in the weak antitrust lawsuit brought by the FTC, attempting to undo the acquisitions of Instagram and WhatsApp that it cleared over 10 years ago. The FTC’s case ignores how the market actually works and chases a theory that doesn’t hold up in the real world.
“The evidence at trial will show what every 17-year-old in the world knows: Instagram, Facebook and WhatsApp compete with Chinese-owned TikTok, YouTube, X [formerly Twitter], iMessage and many others.”
In reference to Meta representatives meeting with the White House, a Meta spokesperson told The Wall Street Journal: “We regularly meet with policymakers to discuss issues impacting competitiveness, national security and economic growth.”
What Happens Next
The White House has not given any indication that it will prevent the trial from going ahead. If the FTC is successful, Meta may be forced to divest two of its largest brands, which would be one of the biggest shake-ups in the tech world in years.
Leave a Reply