Court Dismisses Monopoly Allegations
A US district judge in Washington ruled that Meta did not violate antitrust laws when it acquired Instagram and WhatsApp more than a decade ago. The decision marks a setback for the Federal Trade Commission, which sued Meta in 2020 and claimed the company used these deals to dominate the social-media market. Judge James Boasberg wrote that the agency failed to prove its case and concluded that Meta does not hold monopoly power. Meta welcomed the ruling and said it competes in a crowded and fast-moving industry.
Executives Describe a Rapidly Changing Market
In April, Judge Boasberg oversaw a lengthy bench trial that included testimony from CEO Mark Zuckerberg and former COO Sheryl Sandberg. They said TikTok and YouTube reshaped the social-media landscape and challenged Meta’s influence. The judge noted that the FTC reviewed and approved the Instagram purchase in 2012 and the WhatsApp acquisition in 2014. The agency argued that Meta overpaid, offering $1 billion for Instagram and $19 billion for WhatsApp. Boasberg described a market where trends rise quickly and disappear just as fast. He said the FTC failed to show that Meta still holds market power and pointed to the company’s shrinking share.
FTC Voices Strong Frustration
The FTC said it had not decided whether to appeal and expressed deep disappointment. Spokesperson Joe Simonson said the agency was considering all options and argued that the process felt unfair. He referred to earlier political clashes involving the judge and noted attempts by some Republican lawmakers to remove him from office. The judge was asked to respond.
Ruling Blocks a Possible Break-Up of Meta
The decision protects Meta from a forced split that could have separated Instagram and WhatsApp from the company. Meta said its platforms support people and businesses and reflect American innovation and growth. A spokesperson said the company plans to keep working with the administration and continue investing in the United States.
Experts See Movement in Antitrust Trends
The ruling follows two recent Justice Department victories against Google involving search and advertising technology. Still, another federal judge recently refused to require Google to divest its Chrome browser. In this context, experts say the Meta ruling signals a shift in momentum. Vanderbilt professor Rebecca Haw Allensworth said the decision may influence future tech cases. She added that the ruling does not signal failure for the government’s broader antitrust strategy and called the overall picture mixed.
Analysts Point to Built-In Challenges
Many legal observers said the FTC faced difficulties from the outset. University of Georgia professor Laura Phillips-Sawyer said rapid changes in social networking complicated the case. She added that early comments from Zuckerberg suggested a desire to suppress a rising threat to the company’s position.
Meta Confronts Ongoing Legal Pressure
Meta still faces major legal challenges. Zuckerberg must testify in a significant trial examining social media’s impact on young people. Last month, a Los Angeles judge rejected Meta’s attempt to avoid his in-person appearance in January. Instagram chief Adam Mosseri will also testify in a case claiming that social-media platforms design addictive features for young users despite knowing the mental-health risks.
