Meta has successfully defended itself in a landmark antitrust case that could have forced the company to spin off Instagram and WhatsApp.
Federal District Judge James Boasberg ruled Tuesday that Meta does not hold a monopoly in the social media market, ending a legal challenge from the Federal Trade Commission (FTC) that began in 2020. The FTC had argued that Meta maintained monopoly power by acquiring competitors, citing CEO Mark Zuckerberg’s 2008 maxim: “It’s better to buy than compete.”
In his decision, Boasberg wrote that even if Meta had monopoly power in the past, the FTC had to prove it continues to hold such power today. The court found that the agency failed to meet that standard. The FTC had highlighted Facebook’s past acquisitions of Instagram in 2012 and WhatsApp in 2014 as evidence that Meta systematically eliminated competitive threats. However, Judge Boasberg emphasized that the case was not about historical acquisitions, which had already been approved, but whether Meta currently holds a monopoly.
During testimony, Zuckerberg denied buying Instagram to neutralize competition, noting that emails cited by the FTC were part of early acquisition discussions and did not fully reflect his intentions. The court noted that the competitive landscape has changed dramatically since 2020, with rivals such as TikTok emerging as significant competitors to Meta’s platforms. Boasberg referenced the Greek philosopher Heraclitus, stating that “no one can step into the same river twice,” noting how much the social media environment has shifted.
Meta’s Chief Legal Officer Jennifer Newstead said the ruling “recognizes that Meta faces strong competition” and praised the company’s products for supporting innovation and economic growth. Analysts also noted that the verdict was expected, given Meta’s recent efforts to compete with TikTok and other emerging platforms.
Facebook’s major acquisitions helped it transition from desktop to mobile, maintaining relevance with younger users as new competitors, including Snapchat and TikTok, gained traction. The FTC’s definition of Meta’s competitive market excluded rivals like TikTok, YouTube, and Apple’s messaging service, a point that the court noted.
Despite this victory, regulatory scrutiny of Meta continues, especially regarding issues like the mental health of minors and its growing investments in artificial intelligence. Investors reacted calmly, with Meta shares dipping slightly by 0.72%, following general market trends.
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