The Federal Trade Commission has initiated a landmark antitrust trial against Meta, accusing the company of creating a monopoly through the acquisition of start-ups such as Instagram and WhatsApp. The government argues that Meta engaged in a “buy-or-bury strategy” that deprived consumers of other social networking options and eliminated competition. If the government succeeds, Meta may be required to divest Instagram and WhatsApp, potentially changing the landscape of Silicon Valley and setting a new precedent for big tech companies acquiring younger rivals. However, legal experts caution that proving Meta’s success would have been different without these acquisitions will be challenging.
The case against Meta is part of a larger bipartisan effort to address the vast power held by a few tech companies in various sectors. The trial is the third major tech antitrust case within the past two years, with the Department of Justice previously winning cases against Google for monopolizing internet search and ad technology. The case against Meta, as well as upcoming suits against Apple and Amazon, signal ongoing efforts to curb the influence of tech giants over commerce, communication, and politics. The outcome of the trial could impact Meta’s 3.5 billion users who rely on its platforms for news, shopping, and communication.
The trial against Meta is being closely watched, with the company’s chief legal officer and global affairs officer in attendance, along with the F.T.C. Chairman and Judge James Boasberg presiding over the case. The government’s case is built on Section 2 of the Sherman Antitrust Act, alleging that Meta maintained a monopoly through anticompetitive practices when acquiring Instagram and WhatsApp. The F.T.C. points to email correspondence among Meta executives and other evidence to demonstrate that the start-ups were perceived as threats to the company’s dominance.
Throughout the eight-week trial, the government and Meta are expected to present differing narratives of the company’s growth and the impact of the acquisitions of Instagram and WhatsApp. The F.T.C. plans to call witnesses from Meta, as well as competitors, venture capitalists, economists, and media industry executives to support its case. Notably, Mark Zuckerberg, Sheryl Sandberg, and Kevin Systrom are among the key figures expected to testify during the trial. The outcome of the case against Meta could have significant implications for the tech industry and how antitrust laws are applied to prevent monopolistic behavior by dominant players in the market.
