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news Meta will face antitrust trial over Instagram, WhatsApp acquisitions

A thread covering the latest news on trends, groundbreaking technologies, and digital innovations reshaping the tech landscape.
A federal judge ruled Wednesday that Meta must face trial in an antitrust case brought by the Federal Trade Commission (FTC) over the social media giant’s acquisitions of Instagram and WhatsApp.

U.S. District Judge James Boasberg denied Meta’s request to drop the FTC’s case, though the judge did dismiss one portion of the lawsuit, and said he would hold a hearing later this month to discuss a trial date.


“In the end, while the parties’ legal jousting is both impressive and comprehensive, it leaves no clear victor. This case must go to trial. Under the forgiving summary-judgment standard, the FTC has put forward evidence sufficient for a reasonable factfinder to rule in its favor,” Boasberg wrote in his 92-page opinion.

The FTC sued Meta in 2020, alleging the social media giant has illegally maintained a monopoly on personal social networking through its acquisition of Instagram in 2012 and WhatsApp in 2014.

The case has remained in pre-trial proceedings for multiple years. It was initially dismissed in 2021 but the FTC later filed an amended complaint.

Boasberg scheduled a virtual status conference on Nov. 25 to discuss the trial schedule.


Meta, which has denied the FTC’s monopoly allegations, said it would review the opinion when it’s filed.

“We are confident that the evidence at trial will show that the acquisitions of Instagram and WhatsApp have been good for competition and consumers,” a Meta spokesperson said in a statement. “More than 10 years after the FTC reviewed and cleared these deals, and despite the overwhelming evidence that our services compete with YouTube, TikTok, X, Apple’s iMessage, and many others, the Commission is wrongly continuing to assert that no deal is ever truly final, and businesses can be punished for innovating.”

Source: https://thehill.com/policy/technology/4988461-meta-antitrust-case-ftc/
 
This is a very complex one. In my opinion, I think it would be unfair on the part of Meta to be penalized on the past acquisition. It would be fine if the current standard is only applicable to the acquisition made after the set standards. As to monopolization, this issue doesn't work for me because online is free for everyone to operate. The only difficulty is the challenges to compete against tech giants like Meta.
 
I don't think Meta will lose this case. The government approves mergers and acquisitions. The Justice Department and FTC would have reviewed those acquisitions before they were finalised. Those agencies, not Meta, should be held accountable for negligence
They could have approved it at the time because there were TikTok, etc., which did serve as alternatives for Instagram. However, Instagram Reels was introduced after that, (I would have to check the dates), which made them competitive with Tiktok, and then Threads to compete with Twitter/X.

So, they might not have pushed their weight when initially approved, but they pushed forward to stomp out competition later on.

I don't think you can call it negligence by not being able to see the future landscape of what they could turn into.
 
They could have approved it at the time because there were TikTok, etc., which did serve as alternatives for Instagram. However, Instagram Reels was introduced after that, (I would have to check the dates), which made them competitive with Tiktok, and then Threads to compete with Twitter/X.

So, they might not have pushed their weight when initially approved, but they pushed forward to stomp out competition later on.

I don't think you can call it negligence by not being able to see the future landscape of what they could turn into.
I agree with you. The business environment is dynamic. It's possible new facts show that competition is reducing and consumers' choice is getting restricted.
 
Big businesses are created by monopoly and duopoly. If they are investigating Meta, they should also investigate Black Rock. How could a single company manage $11.5 trillion assets.
 
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