A date has been set for the American Federal Trade Commision’s (FTC) trial against Meta. The trial seeks to break the social media giant away from its second-biggest subsidiary. The FTC’s case essentially alleges that Meta purchased WhatsApp and primarily Instagram for the sole purpose of eliminating competitors in the social media landscape.
Meta-Morphosis
The U.S. Federal Trade Commission exists to curb monopolies and protect smaller businesses and consumers. The Commission began pursuing Meta in 2020 during Trump’s presidency. It alleges that Meta acted illegally by overpaying when acquiring Instagram in 2012 and WhatsApp in 2014, all in a bid to control nascent competition and increase its share of the social media communications market.
Two weeks ago Judge James Boasberg denied Meta’s motion to end the case, siding with the FTC’s claims enough to believe that the matter is worth litigating. He has set April 14 2025 as the official start of the case.
The Commission has its work cut out according to Boasberg, as “time and technological change pose serious challenges” to the FTC’s market definition. “The Commission faces hard questions about whether its claims can hold up in the crucible of trial.” He continued, “Indeed, its positions at times strain this country’s creaking antitrust precedents to their limits.”
When dismissing Meta’s motion earlier in the month, Boasberg accepted the FTC’s core claim against Meta but dismissed their allegations that Facebook also restricts third-party apps’ access to the platform. He also ruled that, at the trial, Meta may not argue that the WhatsApp acquisition boosted competition by making it more competitive with Apple and Google.
Since Lina Khan’s takeover of the FTC in 2021, the Commission has grown more aggressive in its aims to curb the neverending expansion of corporations, actions which then lead to competition-stifling monopolies. They’ve blocked expansionist deals for Amazon, and are currently pursuing the decoupling of Chrome and other subsidiaries from Alphabet’s umbrella.
Older readers may remember the FTC’s lengthy pursuit of Microsoft, which took place over several years in the 1990s, before the tech giant was finally forced to share more of its tech and stop preventing PC manufacturers from supporting other operating systems. However this case turns out, expect a lengthy trial and various appeals. Meta’s battle for Instagram will undoubtedly drag on for years.
