Meta Secures Major Victory in FTC Antitrust Battle
Meta Platforms Inc. has won a pivotal antitrust case brought by the U.S. Federal Trade Commission (FTC), allowing it to retain control of WhatsApp and Instagram. The ruling marks a setback for regulators aiming to curb Big Tech’s dominance and could influence future merger challenges.
FTC’s Argument: Anti-Competitive Acquisitions
The FTC alleged Meta’s purchases of Instagram (2012) and WhatsApp (2014) eliminated competitors and solidified its social media monopoly. Internal emails revealed Meta executives, including Mark Zuckerberg, saw both platforms as threats before acquiring them. The agency sought divestiture, claiming the deals reduced innovation and user choice.
Meta’s Defense: Growth and Investment
Meta argued the acquisitions were strategic, not anti-competitive, and transformed both apps into global services. Its legal team emphasized that the FTC initially approved the deals and that Meta’s resources fueled WhatsApp’s security upgrades and Instagram’s expansion.
Court’s Ruling: FTC Failed to Prove Harm
The court sided with Meta, stating regulators lacked evidence that the deals damaged competition. The judge noted the FTC couldn’t show how the market would’ve differed without the mergers, highlighting the difficulty of retroactively challenging tech mergers.
What This Means for Big Tech
The decision weakens the FTC’s aggressive stance under Chair Lina Khan and may embolden other tech giants facing similar lawsuits. However, future mergers will likely face heightened scrutiny.
Mixed Reactions to the Verdict
- Tech Industry: Celebrates the ruling as a win for innovation.
- Critics: Senator Elizabeth Warren called it a “loss for competition,” urging stronger antitrust laws.
Next Steps for Meta
With the trial resolved, Meta shifts focus to metaverse and AI projects, though regulatory battles in the EU and elsewhere persist. The outcome signals ongoing tension between tech giants and governments worldwide.
