Judge Dismisses Antitrust Allegations
A US district judge in Washington ruled that Meta did not violate antitrust laws when it acquired Instagram and WhatsApp more than a decade ago. The ruling is a setback for the Federal Trade Commission, which sued Meta in 2020, claiming the acquisitions helped the company dominate social media. Judge James Boasberg wrote that the agency failed to prove its case and concluded that Meta does not hold monopoly power. Meta welcomed the decision and emphasized it operates in a competitive and fast-changing market.
Executives Highlight Fierce Competition
In April, Judge Boasberg presided over a lengthy bench trial that included testimony from CEO Mark Zuckerberg and former COO Sheryl Sandberg. They said TikTok and YouTube reshaped the social-media landscape and limited Meta’s influence. The judge noted that the FTC reviewed and approved the Instagram purchase in 2012 and the WhatsApp acquisition 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 and fade quickly. He said the FTC failed to prove Meta still holds market power and pointed to the company’s declining share.
FTC Expresses Strong Disappointment
The FTC said it had not decided whether to appeal and voiced deep frustration. Spokesperson Joe Simonson said the agency was reviewing all options and argued that the process felt biased. He referenced prior political disputes involving the judge and noted efforts by some lawmakers to remove him from office. The judge was asked for comment.
Ruling Protects Meta from Break-Up
The decision shields Meta from a potential split that could have separated Instagram and WhatsApp from the company. Meta said its platforms help people and businesses and demonstrate American innovation. A spokesperson said the company will continue to work with the administration and invest in the United States.
Experts See Shift in Antitrust Momentum
The ruling follows two Justice Department victories against Google involving search and advertising technology. Another judge recently declined to force Google to divest its Chrome browser. Experts say the Meta decision could influence future tech cases. Vanderbilt professor Rebecca Haw Allensworth said the ruling does not indicate failure for the government’s broader antitrust efforts and described the overall picture as mixed.
Scholars Note Early Challenges
Many legal experts said the FTC faced difficulties from the start. University of Georgia professor Laura Phillips-Sawyer said rapid market changes complicated the case. She added that early statements from Zuckerberg suggested a desire to suppress a rising competitor that threatened the company’s position.
Meta Still Faces Legal Scrutiny
Meta continues to face significant legal challenges. Zuckerberg must testify in a landmark trial examining social media’s impact 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 social-media companies design addictive features for young users despite knowing the mental-health risks.
