Meta Platforms’ chief executive, Mark Zuckerberg, appeared in federal court on Monday to fend off accusations against his company in a monumental antitrust trial.
The case brought by the Federal Trade Commission (FTC) could result in the breakup of his $1.3 trillion tech empire. The trial is focused on Meta’s past purchases of Instagram and WhatsApp — two apps that now serve as cornerstones for how billions of people connect to the internet. Zuckerberg’s testimony was on the first day of proceedings. This is one of the largest legal threats the company has faced since its formation.
Prosecutors argue that Facebook lacked the innovation to compete in the fast-growing mobile space, leading it to acquire rivals rather than build its own solutions. They also noted Meta’s acquisition of “Glancee,” a failed Google social app, to stifle Google’s social dreams.
The FTC is seeking a court order to require Meta to divest Instagram and WhatsApp, arguing that is the only way to return competition to the marketplace.
Zuckerberg pushes back in court defending Meta against antitrust accusations
Mark Zuckerberg rejected the FTC’s accusations. He argues that the governmental view of the market is too narrow. For one, he said that Facebook doesn’t only face off against small social media apps. It’s also in competition with titans like TikTok, YouTube, X (the platform formerly known as Twitter), LinkedIn, and even iMessage.
He said Meta’s platforms are more than connecting family and friends. They are also venues for entertainment, news, and learning about the world. Facebook’s growth, he argued, had allowed services to get better for consumers. He said that the company had invested in security, given improved tools to users, and built additional avenues for people to connect.
Meta’s attorneys also noted that the FTC cleared the acquisition of Instagram and WhatsApp long ago. It is injustice, they contend, to discard those deals now. A Meta spokesman said the case mischaracterized the company as a monopoly and ignored the fact that there are dozens of alternatives to social media available to people today.
FTC pushes for Meta to divest Instagram and WhatsApp
The result of this trial could be enormous. If the judge sides with the government, Meta could be required to spin off Instagram and WhatsApp. That would rattle the foundation of Meta’s business model. In 2024, Instagram generated over $32 billion ad revenue—nearly half of Meta’s overall earnings. WhatsApp makes less money but is rapidly gaining in business messaging.
The case is one of several in an effort by the U.S. government to rein in the power of Big Tech. The FTC and the Department of Justice have also sued Amazon, Apple, and Google in the past few years.
The judge assigned to the case, James Boasberg, has not entirely gotten on board with the FTC’s argument.
Experts say he seems willing to hear both sides but is cautious about how narrowly the market is defined. Paul Swanson, an antitrust expert, said the judge had recognized the FTC’s concerns but failed to fully embrace the regulators’ perspective, making it a difficult road for the regulators to travel.
Even so, if the FTC prevails, it could lead to a new era of tech mergers with diminished merger activity overall and more scrutiny on other large companies. The trial is expected to stretch over weeks—that testimony from Zuckerberg was just the warm-up. More than one executive from Meta may be ordered to testify. Economists and experts in various industries are expected to weigh in on the developments.
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