Meta Heads to Court Over Antitrust Allegations
WASHINGTON: Meta, the parent company of Facebook, is set to face a high-stakes antitrust trial next week unless a last-minute settlement is reached. The U.S. government accuses the tech giant of leveraging its market power to eliminate potential competition by acquiring Instagram and WhatsApp.
The trial, which will take place in a federal court in Washington, may dash any expectations Meta CEO Mark Zuckerberg had that a potential Donald Trump return to the presidency might ease antitrust scrutiny on major tech firms.
The case, brought forward by the Federal Trade Commission (FTC)—America’s leading consumer protection agency—could lead to Meta being ordered to spin off Instagram and WhatsApp. Both platforms have seen massive growth under Meta’s ownership and are now industry leaders.
Initially filed in December 2020 during Trump’s first term, the lawsuit has remained under close watch, particularly amid speculation about how a second Trump presidency might approach Big Tech regulation.
In recent months, Zuckerberg has made several White House visits in a bid to avoid a full trial. He’s reportedly pushed for a negotiated settlement, although the FTC appears firm in its stance. FTC Chair Andrew Ferguson recently stated in an interview with The Verge that he would be surprised if political pressure led to dropping the case, emphasizing the need to uphold the law.
Zuckerberg’s lobbying efforts have included contributions to Trump’s inauguration fund and changes to Facebook’s content moderation practices, perceived as favoring conservative voices. However, according to antitrust expert Professor George Hay of Cornell Law School, it’s unclear whether Trump views Zuckerberg as redeemable.
Although an intervention from the White House is still technically possible, it would require both executive and FTC consensus that the case lacks legal standing.
The Meta trial is part of a broader crackdown by U.S. regulators on major tech companies. Google was recently found guilty of monopolizing the search market, and both Apple and Amazon face similar antitrust challenges.
Zuckerberg, along with former COO Sheryl Sandberg and executives from competing tech firms, are expected to testify during the eight-week trial beginning Monday.
Acquisitions Under the Microscope
At the heart of the case are Meta’s strategic acquisitions. The FTC claims that Facebook’s $1 billion purchase of Instagram in 2012 was designed to neutralize a potential rival. An internal email from Zuckerberg cited by the FTC said: “The potential impact of Instagram is really scary and why we might want to consider paying a lot of money for this.”
Similarly, the agency argues that Meta’s $19 billion acquisition of WhatsApp in 2014 was another move to quash future threats. WhatsApp’s potential to evolve into a social platform or fall into a competitor’s hands, the FTC says, drove Zuckerberg’s interest.
Meta plans to counter these claims by arguing that its investments turned both companies into the global powerhouses they are today. It also contends that both acquisitions were cleared by the FTC at the time, and the agency should not be allowed to reverse its decision years later.
The FTC, however, faces a tough legal road. Recent losses in cases against Meta’s Within acquisition and Microsoft’s purchase of Activision Blizzard have weakened its position.
Judge James Boasberg, who will oversee the trial, has already warned that the FTC faces significant legal hurdles to prove its case.
