Facebook owner Meta will face trial in April over allegations by the US Federal Trade Commission (FTC) its acquisitions of Instagram and WhatsApp were intended to eliminate competition.
The trial date, set for April 14, was announced by Judge James Boasberg in Washington.
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FTC’s Allegations
The FTC filed the lawsuit in 2020 during the Trump administration. It accuses Meta (then Facebook) of maintaining a monopoly on personal social networks through anti-competitive practices.
According to the FTC, Meta overpaid for Instagram in 2012 and WhatsApp in 2014 to neutralize emerging threats rather than competing in the mobile ecosystem.
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Meta’s Defense
Meta has argued the FTC’s case hinges on a narrow definition of social media markets that excludes competition from platforms like ByteDance’s TikTok, Alphabet’s YouTube, X, and Microsoft’s LinkedIn.
The company contends the FTC’s claims are outdated and fail to reflect the current competitive landscape.
Earlier this month, Judge Boasberg rejected Meta’s motion to dismiss the case, stating that it should proceed to trial.
However, the judge acknowledged the FTC’s challenges in proving its case, noting that “time and technological change pose serious challenges” to the FTC’s market definition.
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Legal Implications
Judge Boasberg observed the FTC’s arguments push the boundaries of current antitrust laws, which may complicate the case.
He said:
“The Commission faces hard questions about whether its claims can hold up in the crucible of trial. Indeed, its positions at times strain this country’s creaking antitrust precedents to their limits.”
The outcome of this trial could have far-reaching implications for antitrust enforcement in the tech industry, potentially reshaping how acquisitions by dominant players are evaluated in the future.
