Judge Rejects Monopoly Claims
A US district judge in Washington ruled that Meta did not violate antitrust laws when it acquired Instagram and WhatsApp more than ten years ago. The ruling is a setback for the Federal Trade Commission, which sued Meta in 2020 and argued the company used these acquisitions to build dominance in social media. Judge James Boasberg wrote that the agency failed to back its claims and concluded that Meta does not hold monopoly power. Meta welcomed the decision and said the company faces strong and constant competition.
Executives Describe a Competitive Market
In April, Judge Boasberg led a lengthy bench trial that included testimony from CEO Mark Zuckerberg and former COO Sheryl Sandberg. They argued that TikTok and YouTube changed the social-media landscape and challenged Meta’s influence. The judge noted that the FTC examined and approved the Instagram purchase in 2012 and the WhatsApp deal in 2014. The agency argued that Meta paid too much, offering $1 billion for Instagram and $19 billion for WhatsApp. Boasberg described a fast-changing market in which trends rise and fall quickly. 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 yet decided whether to appeal and voiced deep frustration. Spokesperson Joe Simonson said the agency was reviewing every option and argued that the process felt weighted against them. He mentioned earlier political conflicts involving the judge and noted efforts by some Republican lawmakers to remove him from office. The judge was asked for comment.
Meta Avoids Forced Break-Up
The ruling prevents a possible split that might have separated Instagram and WhatsApp from Meta. The company said its platforms support people and businesses and reflect American innovation and economic growth. A spokesperson said Meta plans to continue working with the administration and investing in the United States.
Observers See Shifting Antitrust Momentum
The decision follows two recent Justice Department wins against Google in cases covering search dominance and advertising technology. Yet another federal judge recently refused to require Google to divest its Chrome browser, despite government arguments. In this climate, experts say the new Meta ruling suggests a shift in momentum. Vanderbilt professor Rebecca Haw Allensworth said the judgment may influence decisions on future antitrust cases. She added that the ruling does not signal failure for the government’s broader antitrust campaign and described the overall situation as mixed.
Legal Experts Note Early Challenges
Many analysts said the FTC case faced obstacles from the start. University of Georgia professor Laura Phillips-Sawyer said the rapidly evolving social-networking market complicated the case. She added that early messages from Zuckerberg suggested a desire to weaken a rising threat to the company’s position.
Meta Still Faces Major Legal Tests
Meta continues to face significant legal pressure. Zuckerberg must testify in a major trial 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.
