Judge Dismisses Monopoly Claims
A US district judge in Washington ruled that Meta did not violate antitrust laws when it acquired Instagram and WhatsApp over ten years ago. The decision delivers a major setback to the Federal Trade Commission, which sued Meta in 2020, claiming the purchases allowed the company to 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 ruling and emphasized that it competes in a fast-changing, highly competitive market.
Executives Point to Fierce Competition
In April, Judge Boasberg presided over a lengthy bench trial featuring testimony from CEO Mark Zuckerberg and former COO Sheryl Sandberg. They argued that TikTok and YouTube transformed the social-media landscape and challenged Meta’s influence. The judge noted that the FTC reviewed and approved Meta’s Instagram acquisition in 2012 and WhatsApp purchase in 2014. The agency claimed Meta overpaid, spending $1 billion for Instagram and $19 billion for WhatsApp. Boasberg described a market that changes rapidly, with trends rising quickly and fading just as fast. He said the FTC did not prove that Meta still holds market power and highlighted its shrinking share.
FTC Voices Strong Frustration
The FTC said it has not decided whether to appeal and expressed deep disappointment. Spokesperson Joe Simonson said the agency was reviewing all options and argued that the process felt biased. He referenced past political clashes 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 products support people and businesses and demonstrate American innovation and economic growth. A spokesperson said the company plans to continue working with the administration and investing in the United States.
Experts See a Shift in Antitrust Momentum
The ruling follows two Justice Department victories against Google over search and advertising technology. Another judge recently rejected an effort to force Google to divest its Chrome browser. Experts said the Meta decision may influence the pace of future tech cases. Vanderbilt professor Rebecca Haw Allensworth said the ruling does not signal failure for the government’s broader antitrust efforts and described the overall picture as mixed.
Legal Analysts Note Early Challenges
Many observers said the FTC faced hurdles from the beginning. University of Georgia professor Laura Phillips-Sawyer said rapid market changes complicated the case. She added that early comments from Zuckerberg suggested a desire to neutralize a rising competitor that threatened the company’s dominance.
Meta Faces Ongoing Legal Scrutiny
Meta still confronts major 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 an 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 while knowing the mental-health risks.
