Court Rejects Monopoly Case
A US district judge in Washington ruled that Meta did not break antitrust laws when it bought Instagram and WhatsApp more than ten years ago. The decision is a setback for the Federal Trade Commission, which sued Meta in 2020 and argued the purchases helped the company dominate social media. Judge James Boasberg wrote that the agency failed to prove its claims and concluded that Meta does not hold monopoly power. Meta welcomed the ruling and said it operates in a crowded, fast-moving market.
Executives Describe Fierce Competition
During an April bench trial, Boasberg heard testimony from CEO Mark Zuckerberg and former COO Sheryl Sandberg. They said TikTok and YouTube transformed the industry and constrained Meta’s influence. The judge noted that the FTC reviewed and approved the Instagram deal in 2012 and the WhatsApp purchase in 2014. The agency argued that Meta overpaid, offering $1 billion for Instagram and $19 billion for WhatsApp. Boasberg described a rapidly shifting market where trends rise quickly and fade just as fast. He added that the FTC failed to show that Meta still holds market power and highlighted the company’s declining share.
FTC Signals Disappointment
The FTC said it had not decided whether to appeal and voiced strong frustration. Spokesperson Joe Simonson said the agency was considering all options and argued that the process felt unfair. He pointed to earlier political disputes involving the judge and noted attempts by some Republican lawmakers to remove him from office. The judge was asked for comment.
Ruling Keeps Meta Intact
The decision protects Meta from a potential break-up that could have separated Instagram and WhatsApp from the company. Meta said its platforms support people and businesses and reflect American innovation and economic growth. A spokesperson said the company will continue working with the administration and investing in the United States.
Experts Suggest Mixed Antitrust Signals
The ruling follows two Justice Department wins against Google involving search and advertising technology. Still, another federal judge recently declined to require Google to divest its Chrome browser. Experts say the Meta ruling could influence upcoming tech cases. Vanderbilt professor Rebecca Haw Allensworth said the judgment does not signal failure for the government’s broader antitrust strategy and described the overall picture as mixed.
Scholars Note Early Obstacles
Many legal observers said the FTC faced challenges from the start. University of Georgia professor Laura Phillips-Sawyer said rapid industry changes complicated the case. She added that early comments from Zuckerberg suggested an effort to weaken a rising competitive threat.
Meta Faces More Legal Battles
Meta still confronts major legal pressure. Zuckerberg must testify in a key case examining social media’s effect on young people. Last month, a Los Angeles judge rejected Meta’s attempt to avoid his in-person appearance in January. Instagram chief Adam Mosseri will also testify in a case claiming that social-media companies design addictive features for young users despite being aware of mental-health risks.
