Judge Dismisses Monopoly Claims
A US district judge in Washington ruled that Meta did not violate antitrust laws when it acquired Instagram and WhatsApp more than ten years ago. The decision delivers a major setback to the Federal Trade Commission, which sued Meta in 2020, claiming the acquisitions allowed the company to dominate social media. Judge James Boasberg wrote that the agency failed to prove its case and concluded that Meta does not hold monopoly power. Meta welcomed the ruling, emphasizing it competes in a fast-moving and highly competitive market.
Executives Highlight Intense Competition
In April, Judge Boasberg presided over a long bench trial that featured testimony from CEO Mark Zuckerberg and former COO Sheryl Sandberg. They said TikTok and YouTube reshaped the social-media landscape and challenged Meta’s influence. The judge noted that the FTC approved Meta’s Instagram purchase in 2012 and its WhatsApp acquisition in 2014. The agency argued that Meta overpaid, offering $1 billion for Instagram and $19 billion for WhatsApp. Boasberg described a rapidly evolving market where trends rise quickly and fade just as fast. He said the FTC failed to show that Meta still holds market power and pointed to the company’s shrinking share.
FTC Voices Strong Frustration
The FTC said it had not yet decided whether to appeal and expressed deep disappointment. Spokesperson Joe Simonson said the agency was reviewing all options and argued that the process felt biased. He referenced earlier political disputes involving the judge and noted efforts by some lawmakers to remove him from office. The judge was asked for comment.
Ruling Prevents Potential Break-Up
The decision shields Meta from a possible split that could have forced Instagram and WhatsApp to separate from the company. Meta said its platforms benefit people and businesses and demonstrate American innovation and growth. A spokesperson said the company plans to continue working with the administration and investing in the United States.
Experts See Shifts in Antitrust Trends
The ruling follows two Justice Department victories against Google over search and advertising technology. Another judge recently declined to require Google to divest its Chrome browser. Experts said the Meta decision may shape future tech cases. Vanderbilt professor Rebecca Haw Allensworth said the ruling does not signal failure for the government’s broader antitrust efforts and described the overall picture as mixed.
Scholars Highlight Early Challenges
Many legal observers said the FTC faced obstacles from the start. University of Georgia professor Laura Phillips-Sawyer said rapid market changes complicated the case. She added that early comments from Zuckerberg suggested a desire to weaken a rising competitor that threatened the company’s dominance.
Meta Faces Continuing Legal Pressure
Meta still confronts major legal challenges. Zuckerberg must testify in a landmark trial examining social media’s impact on young people. Last month, a Los Angeles judge rejected Meta’s attempt to avoid an in-person appearance in January. Instagram chief Adam Mosseri will also testify in a case alleging that social-media companies design addictive features for young users while knowing the mental-health risks.
