Court Rejects Monopoly Allegations
A US district judge in Washington ruled that Meta did not break antitrust laws when it bought Instagram and WhatsApp more than ten years ago. The decision marks a setback for the Federal Trade Commission, which sued Meta in 2020 and argued the company used these acquisitions to dominate the social-media market. Judge James Boasberg wrote that the agency failed to prove its claims and concluded that Meta does not hold monopoly power. Meta welcomed the decision and said it faces strong competition every day.
Meta Leaders Describe Intense Rivalry
In April, Judge Boasberg oversaw a long bench trial that included testimony from CEO Mark Zuckerberg and former COO Sheryl Sandberg. They said TikTok and YouTube reshaped the market and challenged Meta’s influence. The judge noted that the FTC reviewed and approved both the 2012 Instagram purchase and the 2014 WhatsApp deal. The agency argued that Meta paid too much, offering $1 billion for Instagram and $19 billion for WhatsApp. Boasberg described a market that changes quickly as trends rise and fade. He said the FTC failed to show that Meta still holds market power and pointed to the company’s shrinking share.
FTC Voices Deep Disappointment
The FTC said it had not decided whether to appeal and expressed strong frustration with the ruling. Spokesperson Joe Simonson said the agency was reviewing all options and argued that the process felt biased. He referred to earlier political disputes involving the judge and noted efforts by some Republican lawmakers to remove him from office. The judge was asked to respond.
Ruling Blocks Potential Break-Up of Meta
The decision 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 continue working with the administration and investing in the United States.
Experts See Momentum Shift in Antitrust Cases
The ruling follows two recent Justice Department victories against Google involving search and advertising technology. Still, another judge recently refused to require Google to divest its Chrome browser. Against this backdrop, experts say the Meta decision suggests a shift in momentum. Vanderbilt professor Rebecca Haw Allensworth said the ruling could influence future tech cases. She added that the decision does not signal failure for the government’s broader antitrust strategy and called the overall situation mixed.
Analysts Highlight Structural Challenges
Many legal observers said the FTC faced challenges 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 competitor that threatened Meta’s position.
Meta Faces Ongoing Legal Scrutiny
Meta still confronts major legal tests. Zuckerberg must testify in a significant trial focused on the impact of social media 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.
