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3w ago

Meta Faces Landmark Antitrust Trial Over Instagram and WhatsApp Acquisitions

The FTC accuses Meta of using a 'buy or bury' strategy to stifle competition, with Mark Zuckerberg testifying as the trial begins in Washington, D.C.

FILE - The Meta logo is seen at the Vivatech show in Paris, June 14, 2023. (AP Photo/Thibault Camus, File)
Mark Zuckerberg with Pam Bondi, Trump’s attorney-general. He has been lobbying the Trump administration about the antitrust case
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Overview

  • The Federal Trade Commission (FTC) has launched a trial against Meta, alleging its acquisitions of Instagram in 2012 and WhatsApp in 2014 were aimed at eliminating competition and maintaining a monopoly.
  • The FTC seeks to force Meta to divest Instagram and WhatsApp, arguing that the acquisitions were part of a broader strategy to neutralize potential competitors rather than compete fairly.
  • Meta CEO Mark Zuckerberg testified on the first day of the trial, defending the acquisitions as regulatory-approved moves that spurred innovation and transformed the platforms into global leaders.
  • The trial hinges on the FTC's claim that Meta dominates the 'personal social networking' market, though Meta argues it faces significant competition from platforms like TikTok, YouTube, and X (formerly Twitter).
  • The case is part of a broader governmental push to regulate Big Tech, with potential outcomes including a forced breakup of Meta's assets, which could significantly impact its business model and revenue.