The US Federal Trade Commission (FTC) has accused Meta of gaining “monopoly power” through its acquisitions of Instagram and WhatsApp, as stated during the opening of a significant trial on Monday. The trial, taking place in Washington’s district court, is expected to provide a clear indication of the Trump administration’s position on antitrust matters concerning the technology industry.
FTC lawyer Daniel Matheson argued that Meta diminished competition by acquiring Instagram and WhatsApp in 2012 and 2014 for $1 billion and $19 billion, respectively. According to Matheson, Meta developed “monopoly power” with an 85 percent market share in app usage time, based on the analysis by the regulator.
Evidence presented included a 2012 email from Facebook founder Mark Zuckerberg expressing concerns about Instagram’s potential competitive threat, suggesting a “buy-or-bury” strategy. Additionally, court proceedings shared Zuckerberg’s 2013 warning about WhatsApp’s ability to influence markets such as the US, where SMS was a dominant platform. Matheson claimed Meta was aware that these acquisitions would create a “moat” around the company, protecting it from competition.
Should the court find Meta guilty, the company might be required to divest WhatsApp and Instagram, depending on the FTC’s proposed remedies in the subsequent phase of the trial. Meanwhile, Zuckerberg, who once restricted Donald Trump’s access to Facebook, has recently worked to strengthen ties with the US president, including visiting the White House frequently and easing content policies. Additionally, Zuckerberg reportedly lobbied for a settlement to avoid the trial.
The case represents a significant test under Andrew Ferguson, Trump’s FTC chair, who aims to enforce stricter regulations on Big Tech, accused of censorship by the administration. Alongside Zuckerberg, Meta’s former chief operating officer Sheryl Sandberg and executives from TikTok, Snap, and Google’s YouTube are expected to testify.
Matheson stated that Meta’s practices negatively impacted consumers through increased advertising and notable privacy shortcomings. The FTC also accused Meta of curbing Instagram’s growth to prevent Facebook’s “network collapse,” citing a 2018 confidential email by Zuckerberg as evidence. In response, Meta claimed there was no intention to limit Instagram’s resources.
Meta’s lawyer Mark Hansen countered the claims, arguing that the company lacks a monopoly and remains competitive. Hansen criticized the lawsuit as “misguided” and challenged the FTC’s market share calculations, asserting that Meta’s market share drops below 30 percent when factoring in TikTok and YouTube.
Hansen argued that considering TikTok as a non-competitor to Instagram is illogical, noting user increases on Facebook and Instagram when TikTok experienced downtime. He added that user numbers rose significantly after Instagram and WhatsApp’s acquisitions, with the services remaining free.
Antitrust experts consider the case challenging for the FTC, particularly since Judge Boasberg previously dismissed an initial complaint as “legally insufficient” before accepting a revised case in 2022. The FTC originally sued Meta (formerly Facebook) over four years ago during Trump’s first term as president.