Meta won an antitrust lawsuit that may have forced it to exit Instagram and WhatsApp
Meta successfully avoided what were his company’s biggest threats. A federal judge has sided with a telecommunications company in a historic antitrust case, ruling Tuesday that the Federal Trade Commission (FTC) could not prove that meta is collusion.
The FTC filed antitrust charges against Meta, then known as Facebook, in 2020 during President Donald Trump’s first term. The government had argued that by acquiring its one-time rivals, Instagram and WhatsApp, the company was harming consumers in the social media industry. Meta had argued that those services were only able to grow the 1 billion-year-old apps because of its investment and pointed to Tiktok’s rise as evidence that it continues to face stiff competition.
On Tuesday, US District Judge James Boasberg ruled in favor of the meta. “Whether or not the meta liked it or not. The institution must show that it continues to be strong now,” he wrote. “Today’s court decision determines that the FTC does not.”
If the FTC is successful, it is possible that Meta will release its acquisition of WhatsApp and Instagram. “We are deeply disappointed in this decision,” FTC director of public affairs Joe Simonson said in a statement. “The deck was always stacked against us with Judge BAASBERG, who is currently facing articles of impeachment. We are reviewing all our options.” The FTC could still appeal the ruling, though it’s unclear when it plans to do so.
“The decision of the Court today shows that Meta is facing fierce competition,” said a spokesperson for Meta in a statement. “Our products are beneficial to people and businesses and are an example of American Innovation and economic growth. We look forward to continuing to partner with the administration and invest in America.”
A number of current and former profile managers, including Adam Mosseri, Sheryl Sandberg, Kevin Systrom and Mark Zuckerberg testified within weeks – a long trial at the beginning of the year. In his testimony, Zuckerberg talked about the huge pressure meta was feeling on Tiktok, saying that the growth of meta “slowed down a lot” as Tiktok became more popular.
It turns out that Meta’s defense that Tiktok and YouTube are its biggest competitors is helping Judge BASBERG. When the FTC lawyers tried that meta had a monopoly on “Suction Social Networking” APP installed by Snapchat and APPERALARIDE App
“PSN [personal social networking] Applications may become a market in their own right when the FTC files this case in 2020 or when it is approved by Facebook’s acquisition of Instagram and WhatsApp in 2012 and 2014, “he wrote.” That is gone. The court finally finds that YouTube and Tiktok are not in the Product Market, and they prevent the meta from holding the title. Even if YouTube comes out, including Tiktok alone defeats the FTC case. “
Update, November 18, 20225, 12:08 PM PT: Added a statement from the FTC.
