Particle.news

Download on the App Store

FTC and Meta Clash Over Antitrust Claims in Second Week of Trial

Meta defends its acquisitions of Instagram and WhatsApp, as expert testimony and internal documents shape the FTC's argument for potential divestiture.

Image
Meta CEO Mark Zuckerberg at UFC 313 in Las Vegas
Image
Image

Overview

  • The FTC argues that Meta's acquisitions of Instagram and WhatsApp created a social media monopoly, seeking divestiture to restore competition.
  • Meta maintains that these acquisitions fostered innovation and competition, citing rivals like TikTok, YouTube, and Apple's iMessage as evidence of a competitive market.
  • Expert witness Jihoon Rim testified that WhatsApp posed a significant competitive threat to Meta, with internal documents revealing concerns about its scalability into a broader social network.
  • The trial hinges on defining the personal social networking market under the Sherman Act, with the FTC needing to prove that Meta's dominance harms competition and consumers.
  • Key figures, including Mark Zuckerberg, Sheryl Sandberg, and Instagram co-founder Kevin Systrom, have testified, while internal emails and strategic memos are presented as evidence of anticompetitive intent.