Meta CEO Mark Zuckerberg testified in federal court on the opening day of a significant antitrust case against Meta. The case accuses the company and its leadership of monopolistic practices through the acquisition of smaller apps like Instagram and WhatsApp. The Federal Trade Commission (FTC) alleges that these purchases were part of a strategy to eliminate competition and potential threats to their platform.
FTC lawyer Daniel Matheson stated that Meta chose to purchase competitors instead of competing with them, which established barriers to protect its dominance in the social media market. The FTC aims to show that Meta’s actions have secured a monopoly within the personal social networking market. If the FTC succeeds, the court might require Meta to restructure or divest from acquisitions, including Instagram and WhatsApp.
Such a decision would mark a significant victory for the federal government, especially in its ongoing efforts to regulate large tech companies. The potential breakup of Meta, currently valued at $1.4 trillion, would be the most substantial such action since the 1980s breakup of AT&T.
On the first day of the proceedings, Zuckerberg faced questioning over emails from 2012 and 2014 concerning the acquisitions. He acknowledged that Instagram’s rapid growth necessitated its purchase due to its competitive threat. He also addressed how Facebook has evolved from a peer-connection platform to one more focused on third-party content.
Meta’s attorney, Mark Hansen, dismissed the FTC’s case as a misinterpretation of market dynamics, claiming the company’s competitive landscape includes entities like TikTok and LinkedIn. Judge James Boasberg is presiding over the trial, which will unfold over approximately eight weeks. The court is expected to hear from other notable former Meta officials, such as Sheryl Sandberg and Andrew Bosworth, in the following days.