Court Dismisses Monopoly Claims
A US district judge in Washington ruled that Meta did not violate antitrust laws when it acquired Instagram and WhatsApp more than ten years ago. The decision is a major setback for the Federal Trade Commission, which sued Meta in 2020, arguing the acquisitions helped the company dominate social media. Judge James Boasberg wrote that the agency failed to prove its case and concluded that Meta does not hold monopoly power. Meta welcomed the ruling, stressing that it operates in a highly competitive and fast-changing market.
Executives Point to Fierce Competition
In April, Judge Boasberg presided over a lengthy bench trial with testimony from CEO Mark Zuckerberg and former COO Sheryl Sandberg. They said TikTok and YouTube reshaped the social-media landscape and challenged Meta’s influence. The judge noted that the FTC approved Meta’s Instagram purchase in 2012 and its WhatsApp acquisition in 2014. The agency argued that Meta overpaid, offering $1 billion for Instagram and $19 billion for WhatsApp. Boasberg described a fast-moving market where trends rise quickly and fade just as fast. He said the FTC failed to prove that Meta still holds market power and highlighted the company’s shrinking share.
FTC Voices Strong Disappointment
The FTC said it had not decided whether to appeal and expressed deep frustration. Spokesperson Joe Simonson said the agency was reviewing all options and argued the process felt biased. He referenced prior political disputes involving the judge and noted efforts by some lawmakers to remove him from office. The judge was asked for comment.
Ruling Protects Meta from Forced Break-Up
The decision prevents a potential split that could have separated Instagram and WhatsApp from the company. Meta said its platforms support people and businesses and demonstrate American innovation and economic growth. A spokesperson said the company plans to continue working with the administration and investing in the United States.
Experts Highlight Shifts in Antitrust Enforcement
The ruling follows two Justice Department victories against Google over search and advertising technology. Another judge recently rejected an effort to force Google to divest its Chrome browser. Experts said the Meta decision could influence future tech cases. Vanderbilt professor Rebecca Haw Allensworth said the ruling does not signal failure for the government’s broader antitrust strategy and described the overall picture as mixed.
Legal Scholars Cite Early Challenges
Many observers said the FTC faced hurdles from the start. University of Georgia professor Laura Phillips-Sawyer said rapid market changes complicated the case. She added that early comments from Zuckerberg suggested a desire to neutralize a rising competitor threatening the company’s position.
Meta Faces Ongoing Legal Pressure
Meta continues to confront major legal challenges. Zuckerberg must testify in a landmark trial examining social media’s impact on young people. Last month, a Los Angeles judge rejected Meta’s attempt to avoid an in-person appearance in January. Instagram chief Adam Mosseri will also testify in a case alleging social-media companies design addictive features for young users while knowing the mental-health risks.
