Court Rejects Antitrust Claims
A US district judge in Washington ruled that Meta did not violate antitrust laws when it acquired Instagram and WhatsApp more than a decade ago. The decision represents a setback for the Federal Trade Commission, which sued Meta in 2020 and argued the company used these purchases to dominate social media. Judge James Boasberg wrote that the agency failed to prove its claims and concluded that Meta does not hold monopoly power. Meta welcomed the ruling and said it competes in a crowded and fast-changing market.
Executives Highlight Intense Competition
In April, Judge Boasberg oversaw a lengthy bench trial that included testimony from CEO Mark Zuckerberg and former COO Sheryl Sandberg. They said TikTok and YouTube reshaped the industry and limited Meta’s influence. The judge noted that the FTC reviewed and approved the Instagram acquisition in 2012 and the WhatsApp deal in 2014. The agency argued that Meta overpaid, offering $1 billion for Instagram and $19 billion for WhatsApp. Boasberg described a fast-moving market where new trends rise quickly and fade just as fast. He said the FTC failed to show that Meta still holds market power and pointed to the company’s shrinking share.
FTC Expresses Strong Disappointment
The FTC said it had not decided whether to appeal and voiced deep frustration. Spokesperson Joe Simonson said the agency was considering all options and argued that the process felt unfair. He referred to earlier political disputes involving the judge and noted attempts by some Republican lawmakers to remove him from office. The judge was asked for comment.
Decision Prevents Potential Break-Up
The ruling shields Meta from a forced split that could have separated Instagram and WhatsApp from the company. Meta said its platforms support people and businesses and represent American innovation and economic growth. A spokesperson said the company plans to keep working with the administration and to continue investing in the United States.
Experts Point to Shifting Antitrust Momentum
The ruling follows two Justice Department victories against Google involving search and advertising technology. Still, another federal judge recently refused to require Google to divest its Chrome browser. Against this backdrop, experts say the Meta ruling marks a shift in momentum. Vanderbilt professor Rebecca Haw Allensworth said the judgment may influence decisions on future tech cases. She added that the ruling does not signal failure for the government’s broader antitrust efforts and called the overall landscape mixed.
Analysts Note Early Challenges
Many legal 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 weaken a rising threat to the company’s position.
Meta Faces Further Legal Scrutiny
Meta still confronts major legal challenges. Zuckerberg must testify in a significant case examining social media’s impact on young people. Last month, a Los Angeles judge rejected Meta’s attempt to avoid his in-person appearance in January. Instagram chief Adam Mosseri will also testify in a case claiming that social-media platforms design addictive features for young users despite knowing the mental-health risks.
