Meta, the parent company of Facebook, is facing an antitrust lawsuit in the United States. The lawsuit claims that Meta attempted to restrict competition in the social media market by acquiring Instagram and WhatsApp. On the 13th (local time), according to reports from Reuters and The Washington Post, the U.S. District Court in Washington D.C. denied Meta’s request to dismiss the Federal Trade Commission’s (FTC) antitrust lawsuit, which alleges illegal practices by Meta to monopolize the social networking services (SNS) market.
In December 2020, during Donald Trump’s first administration, the FTC filed an antitrust lawsuit against Facebook, claiming that it paid exorbitant prices to acquire Instagram in 2012 and WhatsApp in 2014 to eliminate competitive threats. Facebook countered by arguing that these acquisitions strengthened its position against Apple and Google, thereby promoting competition.
Judge James Boasberg sided with the FTC’s claims, rejecting Meta’s argument that acquiring WhatsApp actually promoted competition in the market. However, he did not accept the FTC’s claim that Facebook hindered external app developers from accessing its platform to strengthen its dominant position.
Meta immediately responded by stating that it is confident it can prove in court that the acquisitions of Instagram and WhatsApp benefited competition and consumers. On the other hand, FTC spokesperson Douglas Farrar described the effort as a bipartisan attempt to limit Meta’s monopolistic power and restore competition for the freedom and innovation of the SNS ecosystem.
Reuters noted that with this ruling, the lawsuit against Meta has become one of the five major antitrust lawsuits currently underway in the United States, alongside cases involving big tech companies like Amazon, Apple, and Alphabet.
The Washington Post mentioned that this case, which has spanned several years, is expected to extend into Trump’s second administration and could prefigure how strongly a future Trump administration may penalize tech companies regarding antitrust issues. Although President-elect Trump favors deregulation, he has expressed discontent with Meta CEO Mark Zuckerberg, once warning that Zuckerberg could face imprisonment for allegedly trying to influence American politics. However, Trump toned down his criticism after Zuckerberg publicly promised to remain neutral in the upcoming elections.