Judge Rejects Monopoly Claims
A US district judge in Washington ruled that Meta did not violate antitrust laws when it acquired Instagram and WhatsApp over a decade ago. The decision marks a major setback for the Federal Trade Commission, which sued Meta in 2020, arguing the acquisitions 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 said it competes in a highly dynamic and competitive market.
Executives Point to Rapid Market Shifts
In April, Judge Boasberg presided over a lengthy bench trial featuring testimony from CEO Mark Zuckerberg and former COO Sheryl Sandberg. They said TikTok and YouTube transformed the social-media landscape and challenged Meta’s influence. The judge noted that the FTC approved Meta’s Instagram acquisition in 2012 and its WhatsApp purchase in 2014. The agency argued that Meta overpaid, offering $1 billion for Instagram and $19 billion for WhatsApp. Boasberg described a fast-changing market where trends rise and fade quickly. He said the FTC failed to prove that Meta still holds market power and highlighted its shrinking share.
FTC Expresses Deep Frustration
The FTC said it had not yet decided whether to appeal and voiced strong disappointment. Spokesperson Joe Simonson said the agency was reviewing all options and argued the process felt biased. He referenced prior political disputes involving the judge and noted efforts by some lawmakers to remove him from office. The judge was asked for comment.
Ruling Shields Meta From Break-Up
The decision protects Meta from a potential forced split that could have separated Instagram and WhatsApp from the company. Meta said its platforms support people and businesses and reflect American innovation and economic growth. A spokesperson said the company will 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 a request to force Google to divest its Chrome browser. Experts said the Meta decision may influence future tech cases. Vanderbilt professor Rebecca Haw Allensworth said the ruling does not indicate failure for the government’s broader antitrust efforts and described the overall picture as mixed.
Legal Scholars Note Early Challenges
Many observers said the FTC faced hurdles from the start. 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 threatening the company’s dominance.
Meta Faces Ongoing Legal Challenges
Meta continues to confront major legal pressure. 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 alleging social-media companies design addictive features for young users while knowing the mental-health risks.
