Meta Platforms Inc. (formerly Facebook)’s Instagram and WhatsApp deals, two of its biggest acquisitions in the 2010s, are back in the spotlight. The U.S. Federal Trade Commission (FTC) is seeking to overturn the deals, saying they violated antitrust laws.
The lawsuit, which was first filed in December 2020, is set for a hearing on April 14, 2025.
The trial between Meta and the FTC is set to begin on that date, with Washington District Judge James Boasberg.
Why is this important?
The FTC says that Meta’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were not fair competition, but rather attempts to block competitors from entering the market. The regulator says the deals were made to consolidate market dominance, and were in fact illegal and should not have been approved.
The commission is now demanding that Meta separate its core platforms, Instagram and WhatsApp, from the company’s other products.
The FTC’s main arguments are:
- The quality of service on Instagram and WhatsApp has declined;
- The number of ads has increased;
- The level of privacy has decreased.
These facts, the FTC believes, are evidence that users are being harmed in the absence of competitors.
What could happen?
If the FTC wins:
- Meta could be divested of its most important assets, Instagram and WhatsApp;
- This would mean the loss of hundreds of billions of dollars in capitalization for the company (Meta’s current market value is $1.3 trillion);
- Instagram’s advertising revenue is a significant part of it – this would be a blow to its revenue stream.
Meta’s CEO Mark Zuckerberg and former COO Sheryl Sandberg are expected to be questioned as witnesses in court.
How is Meta responding?
Meta is firm in its position:
“The acquisition of Instagram and WhatsApp was beneficial for consumers and competition. The fact that the FTC is now reviewing deals that were concluded more than 10 years ago is contrary to the principles of justice.”
According to Bloomberg, even Mark Zuckerberg himself has appealed to former US President Donald Trump, but political intervention is not expected yet. However, some sources do not exclude that Trump may later try to put pressure on the appeal process.
The filing of this case could be a new chapter in the fight against monopoly not only for Meta, but for all technology giants. For the first time, the consequences of deals signed years ago in the current market are being seriously considered.
If this lawsuit is successful, it could dramatically change the strategy not only of Meta, but also of other large technology companies.
