The US Federal Trade Commission's antitrust trial against Meta Platforms begins in Washington on Monday, accusing the company of building an illegal social media monopoly through its acquisitions of Instagram and WhatsApp. The FTC, which filed the case in 2020, seeks to force Meta to sell off the two platforms, arguing the purchases were aimed at eliminating nascent competitors.
Meta’s chief legal officer, Jennifer Newstead, dismissed the case as weak and a deterrent to tech investment, calling it absurd to break up a great American company while the administration tries to save TikTok. Analysts note that losing Instagram would be a devastating blow, as the app accounts for over 50% of Meta’s US advertising revenue and has been crucial for attracting younger users.
Meta has made overtures to President Trump since his election, including donating $1m to his inauguration and changing content moderation policies. CEO Mark Zuckerberg, who is expected to testify, has also purchased a $23m mansion in Washington, DC, to spend more time on policy issues. The FTC said it was ready for the trial, with lawyers working around the clock.
The trial will hinge on how users spend time on social media and whether platforms like TikTok, YouTube, and Snapchat are considered interchangeable with Facebook and Instagram. Meta argues that increased traffic during TikTok’s brief US shutdown shows competition, while the FTC claims Meta holds a monopoly on platforms for sharing with friends and family.
The outcome could have far-reaching consequences for the social media industry, according to analysts. Forrester’s vice-president of research, Mike Proulx, noted the trial’s ramifications coupled with TikTok’s uncertain future could reshape the market.
