Meta heads to trial over Instagram and WhatsApp takeovers amid antitrust scrutiny
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Meta Platforms Inc. is set to face a high-stakes antitrust trial in a U.S. federal court next week, with the Federal Trade Commission (FTC) accusing the tech giant of using its dominance to neutralise potential competition by acquiring Instagram and WhatsApp.
The trial could result in Meta being forced to divest both platforms.
The lawsuit, first filed in December 2020 during Donald Trump’s initial presidency, is one of several landmark antitrust actions the U.S. government has launched against Big Tech. Observers had speculated whether Trump’s return to office would lead to a softer regulatory approach. However, the upcoming trial signals no signs of leniency from the FTC or the administration.
Despite efforts by Meta CEO Mark Zuckerberg to sway opinion - including repeated visits to the White House and content moderation changes seen as favorable to Republicans - the FTC, under Chair Andrew Ferguson, has remained firm. Ferguson told The Verge, “I’d be very surprised if anything like a presidential intervention ever happened.”
The trial, expected to last at least eight weeks, will see key figures including Zuckerberg, former COO Sheryl Sandberg, and executives from rival tech companies testify. At the heart of the case is Meta’s 2012 $1 billion acquisition of Instagram and the $19 billion purchase of WhatsApp in 2014.
An internal email cited by the FTC captured Zuckerberg’s anxiety about Instagram’s potential: “The potential impact of Instagram is really scary and why we might want to consider paying a lot of money for this.” The FTC claims both deals were strategic moves to stifle emerging competition.
Meta’s defense argues that the company’s significant investment and innovation turned Instagram and WhatsApp into the global platforms they are today. It also contends that the FTC initially approved both acquisitions and shouldn't reverse course now.
The tech giant hopes to draw strength from recent FTC losses in other high-profile cases, including failed attempts to block Meta’s acquisition of Within and Microsoft’s merger with Activision Blizzard.
Presiding Judge James Boasberg has acknowledged the complexity of the case, cautioning that the FTC faces “hard questions” about the validity of its arguments.