Meta Platforms must stand trial over allegations of crushing social media competition.
A landmark antitrust lawsuit against Meta Platforms, Facebook’s parent company, will proceed to trial, according to a ruling by a U.S. judge.
The Federal Trade Commission (FTC) claims Meta acquired Instagram and WhatsApp to eliminate competition and dominate the social media landscape, potentially leading to a forced break-up of the tech giant.
Judge James Boasberg denied most of Meta’s attempt to dismiss the lawsuit, maintaining that the FTC has a viable claim.
The lawsuit, initially filed in 2020 during the Trump administration, accuses Meta of using acquisitions to stifle emerging competition rather than relying on innovation to remain competitive in the mobile ecosystem.
This FTC action reflects a bipartisan push to dismantle what regulators describe as Meta’s monopoly power, which has restricted freedom and innovation within the social media industry.
Meta’s purchases of Instagram in 2012 and WhatsApp in 2014 are under particular scrutiny.
According to the FTC, the tech giant overpaid for these companies as a deliberate strategy to absorb potential competitors. Although Judge Boasberg dismissed a claim about Meta limiting third-party app developers’ access, he preserved the central charge regarding the acquisitions.
Meta’s Defense and Upcoming Trial Expectations
Meta, however, remains firm in its defense. A spokesperson for the company expressed confidence that trial evidence would prove the acquisitions of Instagram and WhatsApp benefitted consumers by fostering competition.
Despite Meta’s efforts to highlight competitive pressures from platforms like TikTok and YouTube, the court prohibited arguments that the WhatsApp acquisition improved competition against Google and Apple.
A trial date has yet to be set, but Boasberg mentioned he will issue a detailed order after both parties can review and redact confidential commercial details.
Big Tech Under the Lens
The case against Meta is one of several high-stakes antitrust lawsuits targeting major tech companies. Alongside Meta, Amazon and Apple are also facing lawsuits, while Google confronts two separate cases- one of which resulted in a ruling that it unlawfully blocked competition in online search engines.
This wave of regulatory action from both the FTC and the U.S. Department of Justice signifies a tightening clamp on Big Tech as lawmakers work to ensure competition and consumer choice in digital markets.
