In a landmark antitrust lawsuit, the U.S. Federal Trade Commission (FTC) is challenging Meta's acquisitions of Instagram and WhatsApp, which were completed in 2012 and 2014, respectively. The FTC argues that these acquisitions were illegal and seeks to dismantle them, claiming they stifled competition by eliminating potential rivals. The trial, overseen by Judge James Boasberg, will examine whether Meta's dominance in the social media market constitutes a monopoly.
The FTC contends that Meta's strategy has led to a decline in service quality, with increased advertising negatively impacting user experience and weakening privacy protections. If the court orders a breakup, it could disrupt Meta's ecosystem, undermine its cross-platform synergy, and challenge the U.S. government's merger review process.
Meta, valued at $1.3 trillion, relies heavily on Instagram's ad revenue. A forced split could significantly reduce its market value. Meta argues that its acquisitions have benefited competition and consumers, criticizing the FTC's delayed challenge. The outcome will hinge on defining social media markets and Meta's market position.
