Meta Faces Landmark Antitrust Trial Over Instagram, WhatsApp Takeovers

The United States Federal Trade Commission's (FTC) antitrust trial against Meta is set to begin on Monday, following nearly six years of investigation and legal proceedings that could prove pivotal for the tech giant's future.

Legal representatives for both the FTC and Meta will deliver their opening statements before US District Judge James Boasberg, launching a trial expected to last approximately seven to eight weeks.

Photo Credit: AP/PTI

The proceedings will involve a considerable amount of evidence and witness testimony. The government is anticipated to call Meta CEO Mark Zuckerberg, former COO Sheryl Sandberg, and Instagram head Adam Mosseri to testify, according to NPR.

The Wall Street Journal reported that Zuckerberg personally appealed to former President Donald Trump to persuade the FTC to abandon the case-a claim which Meta has denied.

Relations between Zuckerberg and Trump had reportedly become strained, particularly after Trump was banned from Meta's platforms in the aftermath of the January 2021 Capitol riots.

In a statement released late last week, Meta spokesperson Christopher Sgro described the FTC's lawsuit as one that "defies reality", maintaining that the company operates within a highly competitive social media landscape.

"The evidence at trial will demonstrate what every 17-year-old knows: Instagram, Facebook, and WhatsApp are in direct competition with TikTok (owned by China), YouTube, X (formerly Twitter), iMessage, and many others," Sgro stated.

"More than a decade after the FTC originally reviewed and approved our acquisitions, this case now signals that no business deal is ever truly final," he added.

What are the FTC's allegations against Meta?

The US competition authority claims that Meta-parent company of Facebook-acquired Instagram in 2012 and WhatsApp in 2014 with the aim of eliminating potential rivals and monopolising the social media market, according to a BBC report.

The case, first initiated during Donald Trump's administration, gathered momentum under Joe Biden's leadership, and is now proceeding to trial under FTC Chairman Andrew Ferguson.

The government asserts that Meta employed a "buy or bury" strategy-either acquiring emerging competitors or attempting to crush them-thus stifling innovation and consumer choice.

One key piece of evidence the government intends to present is a 2012 internal email in which Zuckerberg allegedly wrote that acquiring Instagram would "neutralise a potential competitor." The FTC argues that such conduct breaches federal antitrust regulations, NPR reported.

To reduce Meta's dominance in the social media industry, the FTC is calling for the company to divest itself of both Instagram and WhatsApp.