FTC Revives Antitrust Fight with Meta Over WhatsApp and Instagram Acquisitions
The Federal Trade Commission is renewing its legal challenge against Meta, appealing a 2023 ruling that dismissed its claims the social media giant operates as an illegal monopoly. The appeal signals the agency’s continued determination to potentially unravel Meta’s acquisitions of Instagram and WhatsApp, despite a previous setback.
The FTC argues Meta has strategically stifled competition through acquisitions rather than organic growth. “Meta has maintained its dominant position and record profits for well over a decade not through legitimate competition, but by buying its most significant competitive threats,” stated Daniel Guarnera, Director of the FTC’s Bureau of Competition. The agency believes a successful appeal could pave the way for forcing Meta to divest the two popular apps.
The original antitrust charges were filed in December 2020, during the final months of the Donald Trump administration. The government’s case centered on the assertion that acquiring Instagram and WhatsApp allowed Meta – then known as Facebook – to suppress competition and ultimately harm consumers. The ensuing trial featured testimony from key figures, including Meta CEO Mark Zuckerberg and former COO Sheryl Sandberg, who discussed the growing pressure to compete with platforms like TikTok.
However, U.S. District Judge James Boasberg sided with Meta, concluding the government failed to demonstrate the company currently holds a monopoly. The judge reasoned that the presence of successful competitors like YouTube and TikTok prevented Meta from exerting monopolistic control, even if past actions were anti-competitive.
Should the FTC prevail on appeal, the possibility of forcing Meta to undo its acquisitions of WhatsApp and Instagram would be revisited. This outcome would represent a significant shift in the tech landscape and could reshape the social media industry.
The appeal also arrives at a delicate moment for Zuckerberg, who has reportedly been actively seeking favor with Trump and emphasizing Meta’s substantial investments – potentially hundreds of billions of dollars – in artificial intelligence infrastructure within the United States. A Meta spokesperson responded to the appeal announcement, stating the original ruling was “correct” and affirming the company’s commitment to “innovating and investing in America.”
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