Court Rejects FTC Argument That Meta Built a Social Media Monopoly
A U.S. district judge ruled that Meta Platforms did not violate antitrust laws through its acquisitions of Instagram and WhatsApp more than ten years ago. The decision, issued by Judge James Boasberg in Washington, said the Federal Trade Commission failed to prove that Meta holds monopoly power in the social media market, delivering a setback to the agency’s 2020 lawsuit seeking to unwind the deals.
FTC’s Case Challenged Meta’s Purchases Approved Years Earlier
Judge Boasberg noted that the FTC had reviewed and approved Meta’s 2012 purchase of Instagram for $1 billion and its 2014 purchase of WhatsApp for $19 billion. The FTC argued that Meta overpaid for both companies to suppress emerging competition. In the ruling, the judge described a rapidly shifting social media environment in which apps rise and fade as new features and trends take hold. He wrote that even if Meta previously held dominant power, the agency did not show it “continues to hold such power now,” adding that Meta’s market share “seems to be shrinking.”
Meta Says the Ruling Reflects Strong Competition Across the Sector
Meta said the decision “recognizes that Meta faces fierce competition,” in a statement provided to the BBC. The ruling means the company avoids a potential breakup that could have forced Instagram and WhatsApp to be spun off.
Trial Included Testimony From Zuckerberg and Sandberg
Judge Boasberg presided over a lengthy bench trial in April that included testimony from Meta CEO Mark Zuckerberg and former Chief Operating Officer Sheryl Sandberg. Both argued that platforms such as TikTok and YouTube have reshaped the social media landscape and challenged Meta’s position.
FTC Weighs Options After Defeat
The FTC said it is “deeply disappointed” and has not yet decided whether to appeal. Joe Simonson, the agency’s director of Public Affairs, said the FTC is reviewing its options. He also told the BBC that “the deck was always stacked against us with Judge Boasberg,” pointing to past clashes between the judge and the Trump administration and an ongoing Republican effort in Congress to seek his impeachment. The BBC has asked Judge Boasberg for comment.
Judgment Arrives Amid Other High-Profile Antitrust Cases
The decision follows two Department of Justice victories against Google—one involving search and another involving advertising technology. Earlier this year, however, another judge declined to order Google to spin off its Chrome browser, despite DOJ arguments that such a measure was needed to address its search-related dominance.
Legal Experts Say the Case Was Difficult From the Start
Scholars said the FTC faced a difficult challenge given the speed of change in the social networking sector. Laura Phillips-Sawyer of the University of Georgia School of Law said the market has shifted so quickly that establishing ongoing monopoly power was difficult, though she noted the case highlighted statements from Zuckerberg during the acquisitions that indicated concern over potential competitive threats. Rebecca Haw Allensworth of Vanderbilt Law School said the ruling “feels like a change in momentum” given recent developments but cautioned that it does not signal a failure of broader antitrust enforcement efforts.
Meta Faces Separate Trial on Youth Safety Issues
Meta continues to face other legal pressure. Zuckerberg has been ordered to testify in a separate trial focused on the impact of social media on young people. A Los Angeles County judge ruled last month that an in-person appearance in January is required. Instagram head Adam Mosseri is also scheduled to testify in the same case, which involves claims that Meta and other platforms designed their apps to be addictive despite awareness of mental health risks.
Featured image credits: Flickr
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