Over the past decade, Meta has solidified its market position with the expansion of Instagram and WhatsApp. However, the U.S. government, through the Federal Trade Commission (FTC), is challenging these acquisitions in an antitrust lawsuit. The trial aims to overturn these deals, with proceedings having commenced recently.
Meta's CEO, Mark Zuckerberg, spent much of the trial countering allegations that the acquisitions aimed to suppress competition rather than enhance products. The FTC argues that Zuckerberg acquired WhatsApp due to concerns that private messaging apps could evolve into full-fledged social media platforms. While Zuckerberg acknowledged considering this, he believed the likelihood of WhatsApp competing with Facebook was minimal after meeting with WhatsApp's co-founders.
Zuckerberg viewed WhatsApp's rise as indicative of a shift in online communication from public platforms like Facebook's News Feed to private chats. He considered WhatsApp a valuable asset and a strategic chip in Meta's interactions with Apple and Google. Currently, WhatsApp has nearly 3 billion users, and Meta generates $10 billion annually from ads that drive interactions between users and businesses on WhatsApp, Instagram, and Messenger.
The government also claims that Instagram was acquired to eliminate competition, supported by internal emails. Zuckerberg admitted concerns about Instagram's competition only after its user base reached 1 billion, long after the acquisition.
