Meta Faces Landmark Trial Over Monopoly Claims

FTC Accuses Meta of Buying Out Rivals to Crush Competition

The US Federal Trade Commission (FTC) has launched a major antitrust trial against Meta, claiming the tech giant gained “monopoly power” by acquiring Instagram and WhatsApp. If the court rules against Meta, it could lead to the forced break-up of the $1.5 trillion company.

The trial began this week in Washington, with Meta CEO Mark Zuckerberg appearing in court to defend his company’s actions.

Meta’s ‘Buy-or-Bury’ Strategy Under Fire

The FTC argues that Meta intentionally bought its rivals to eliminate competition. Instagram was purchased in 2012 for $1 billion, and WhatsApp in 2014 for $19 billion. The regulator claims these acquisitions were part of a deliberate plan to dominate social media and messaging.

Evidence presented included internal emails from Zuckerberg, who admitted in 2012 that Instagram was “pretty threatening” and that buying it would help Facebook keep up with mobile trends. He described the deal as “insurance” against competition.

Monopoly or Smart Business?

Meta’s legal team rejected the monopoly claims, stating that the company has always faced competition — particularly from TikTok and YouTube. They argued that user time spent on Meta platforms has dropped below 30% when these rivals are included.

Meta lawyer Mark Hansen called the FTC’s case “misguided” and said the acquisitions improved product quality while keeping services free for users.

Judge's Previous Rejection Adds Pressure

The FTC originally sued Meta over four years ago, but the case was initially dismissed as “legally insufficient” by Judge James Boasberg. It was only revived after being refiled in 2022.

Legal experts say the FTC still faces a tough battle, with the outcome likely to influence future antitrust action against other Big Tech firms.

Political Tensions Behind the Trial

This high-stakes case also highlights the Trump administration’s renewed focus on regulating Big Tech. FTC Chair Andrew Ferguson, a Trump appointee, has accused the industry of censorship and is pushing for stricter oversight.

Zuckerberg, once at odds with Trump, has since softened Meta’s content policies and increased visits to the White House — even reportedly attempting to settle with the FTC ahead of the trial.

What's at Stake?

If the FTC wins, Meta could be forced to separate from Instagram and WhatsApp — a dramatic move that would reshape the social media landscape. The case also features expected testimonies from key industry figures, including Meta’s former COO Sheryl Sandberg and executives from TikTok, Snap, and YouTube.

Sources: (FT.com, ChatGPT)