Meta’s Monopoly Trial Begins: Key Insights You Should Know
Meta’s future is uncertain in this case, which may compel the company to divest some of its most significant assets.
The future of Meta, the primary business of billionaire Mark Zuckerberg, is at stake as a trial commences in Washington on Monday to decide if the tech titan is infringing antitrust laws.
The Federal Trade Commission (FTC), which has been conducting a thorough investigation into Meta for the last six years, is set to argue before U.S. District Judge James Boasberg that Meta’s purchases of Instagram and WhatsApp have established an unlawful monopoly in social networking.
In a worst-case scenario for Meta, the company could be mandated to separate from both subsidiaries in a breakup reminiscent of the dismantling of AT&T’s telephone monopoly over 40 years ago.
Here’s what you need to know about the pivotal trial in Meta’s history.
Trial
The proceedings are taking place at the E. Barrett Prettyman U.S. Courthouse, located just a short distance from the U.S. Capitol.
This is a bench trial, meaning that Boasberg will exclusively determine the outcome, without a jury. This grants him significant sway over the fate of one of the world’s most influential companies.
FTC Claims
The FTC’s investigation into Meta began during the first term of President Donald Trump and was vigorously pursued during President Joe Biden’s administration.
The FTC is challenging Meta’s acquisition of Instagram in 2012 and WhatsApp in 2014, a messaging service that is particularly favored outside the United States.
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Throughout the trial, the FTC plans to contend that Meta’s acquisition of these two platforms was a strategic move to “buy or bury” any potential competitors to Facebook.
FTC Chairman Andrew Ferguson has emphasized that his agency is eagerly prepared to take action against Meta but will abide by lawful directives from the president to conclude the investigation.
Meta’s Response
Meta firmly denies the claims of maintaining an illegal monopoly, asserting that the FTC’s case is not only outdated but also misaligned with contemporary market conditions.
A Meta spokesperson conveyed to The Epoch Times that the acquisitions were sanctioned by regulators at the time and that the company has always engaged in fair competition. They noted how competitors such as TikTok, YouTube, X, and iMessage continue to thrive.
The spokesperson argued that the lawsuit “defies reality” and warned that a ruling in favor of the FTC would imply that “no deal is ever truly final.”
Furthermore, the company cautioned that dismantling its interconnected platforms could negatively affect users who rely on seamless services and shared backend systems.
Since Trump’s second election, Zuckerberg has visited Mar-a-Lago, discontinued the company’s controversial fact-checking initiatives, rolled back diversity and inclusion strategies, and employed GOP-friendly executives.
The Epoch Times sought additional comments from the FTC but had not received a response by the time of publication.
‘Creaking Antitrust Precedents’
Judge Boasberg has presided over several years of pretrial motions in this case and has indicated he remains unconvinced by the government’s position.
He dismissed the FTC’s initial complaint in 2021 due to unclear market definitions. Although he allowed a revised case to progress, he has continued expressing skepticism, warning in recent months that the FTC’s assertions “strain this country’s creaking antitrust precedents.”
Antitrust laws and litigation are among the most convoluted areas of federal legislation.
Boasberg has provided both parties an opportunity to present their arguments in court. The witness list includes Zuckerberg, former Chief Operating Officer Sheryl Sandberg, and executives from competing platforms like TikTok and Snapchat.
The trial is expected to extend through the summer, with a decision likely to be reached by July.
Samantha Flom contributed to this report.