The lawsuit, initiated by the U.S. Federal Trade Commission (FTC) in 2020, targets Meta’s acquisitions of Instagram in 2012 and WhatsApp in 2014. It alleges that these deals allowed the tech giant to unfairly dominate the market by suppressing competition.
The FTC argues for the potential breakup of Meta, demanding the separation of either Instagram or WhatsApp to restore fair competition.
Meta, on the other hand, counters this claim by citing strong competitors such as TikTok, YouTube, and X (formerly Twitter), arguing that the social media market is dynamic and competitive.Giving testimony in a federal court in Washington D.C., Zuckerberg raised concerns about Instagram’s rapid growth, referring to internal correspondence from 2011 and 2012. By describing these exchanges as early-stage discussions, he emphasized that Meta had made significant progress after acquiring the Instagram platform. The lawsuit, expected to last two months, could have major implications for how large tech companies operate and how they will be regulated in the future. The case is expected to last two months and could have significant implications for how large tech companies operate and how they will be regulated in the future. The case is expected to last two months and could have major … have major implications for how large tech companies operate and how they will be regulated in the future. The case is expected to have major implications for how large tech companies operate and how they will be regulated in the future. The case is expected to have major implications for class=”wp-image-1511″/>
Zuckerberg Defends Instagram and WhatsApp Acquisitions Amid Monopoly Allegations
Meta CEO Mark Zuckerberg, continuing his testimony in a major antitrust lawsuit, argued that his company’s 2012 acquisition of Instagram was driven by innovative camera technology, not social media reach.
The U.S. Federal Trade Commission (FTC) alleges that Meta suppressed competitors by acquiring Instagram ($1 billion) and WhatsApp ($19 billion). The FTC attorney, Daniel Matheson, stated at the opening of the hearing, “Instead of competing with rivals, they bought them out.” As evidence, the FTC presented an internal 2012 memo in which Zuckerberg talks about “neutralizing” Instagram. This memo was presented as “caught red-handed” evidence. Meta’s legal team argued that both deals were approved by the FTC and that these acquisitions were made to improve user experience and strengthen Meta’s product ecosystem. Meta’s lead attorney said, “Acquisitions made for the purpose of developing and growing companies have never been considered illegal.” Meta continues to dominate the social media market, boasting 3.27 billion daily active users on its platforms. Analysts predict that Instagram will account for more than half of Meta’s US advertising revenue by 2025. The case unfolds amid increasing scrutiny of Big Tech companies. The FTC’s lawsuit against Meta runs parallel to the ongoing US Department of Justice antitrust case against Google, and experts note that the Meta case could be more challenging due to the wide competition in the social media market.
