Trial: Meta Faces High-Stakes Battle Over Instagram and WhatsApp Monopoly

Washington, DC – Meta Platforms, the parent company of Facebook, enters a high-stakes trial in Washington on Monday, facing claims of building an illegal social media monopoly. The trial centers around allegations that Meta acquired Instagram and WhatsApp in a bid to eliminate potential competitors, thereby solidifying its dominance in the social media landscape. The US Federal Trade Commission (FTC) initiated the case in 2020 during the first term of former President Donald Trump.

The FTC seeks to compel Meta to restructure or divest parts of its business, including Instagram and WhatsApp, in an effort to restore competition in the industry. The trial represents a significant test for the FTC under the current administration and highlights ongoing scrutiny of big tech companies.

Jennifer Newstead, Meta’s chief legal officer, has publicly criticized the case, labeling it as weak and potentially detrimental to tech investment. The outcome of the trial could have substantial implications for Meta, particularly considering the company’s significant reliance on Instagram for a substantial portion of its US advertising revenue.

Meta’s CEO, Mark Zuckerberg, is expected to testify during the trial, facing scrutiny over past emails suggesting strategies to neutralize competitors through acquisitions. The case will likely delve into whether Meta’s acquisitions have truly benefited users or stifled competition in the industry.

The trial, projected to extend into July, will determine whether measures such as forcing Meta to divest Instagram or WhatsApp are necessary to promote fair competition. The loss of Instagram, a major revenue generator for Meta, could have profound financial repercussions for the company.

As the trial unfolds, experts anticipate far-reaching consequences for the social media industry, with potential implications for market dynamics and the emergence of new players in the space. The case underscores broader concerns surrounding monopoly power and antitrust regulations in the digital age.