Mark Zuckerberg to sell Instagram, WhatsApp? Meta antitrust trial begins today

A major antitrust trial against Meta, the parent company of Facebook, begins today in Washington, as the US Federal Trade Commission (FTC) seeks to force the tech giant to sell Instagram and WhatsApp. The trial, which could last up to 37 days, marks one of the most aggressive moves yet by US regulators to rein in the power of Big Tech.

The FTC alleges that Meta’s acquisitions of Instagram in 2012 for USD 1 billion and WhatsApp in 2014 for USD 22 billion were part of a long-term strategy to eliminate emerging competition and illegally maintain its monopoly in the personal social networking space. According to the lawsuit, Meta bought its rivals to “buy time” while it figured out its own product strategy.

The commission cites internal emails, including one from CEO Mark Zuckerberg stating that “it is better to buy than compete,” as evidence of intent to stifle innovation.

The trial is being presided over by Judge James Boasberg, who will first determine whether Meta indeed holds a monopoly over personal social networking services in the US-a market the FTC says excludes platforms like YouTube and TikTok, which focus more on video content from creators than on social networking between family and friends.

The FTC claims that from 2012 to 2020, Facebook commanded over 80 per cent of user time in this narrowly defined space.

Meta argues that the FTC’s view of the market is far too limited. It maintains that services like TikTok and YouTube are strong competitors, and that the FTC has failed to prove that consumers or advertisers have been harmed. “The FTC must prove that consumers would have had more (or better) options sooner without the acquisitions,” Meta’s lawyers wrote in a recent filing, adding that the apps would not have reached their current scale and success without Meta’s investment and support.

If the court rules against Meta, a separate trial on potential remedies will follow, possibly next year. That could result in Meta being forced to divest Instagram and WhatsApp-an unprecedented move that would shake up the tech industry.

The court could appoint a trustee to oversee the divestiture, which might include sharing data and technology with the new entities and even pausing Meta’s competing product development temporarily.

While any final outcome is likely years away due to expected appeals, the possibility of losing Instagram-which alone brings in an estimated 50 per cent or more of Meta’s US ad revenue-poses a serious threat. The trial’s outcome could also reshape how venture capitalists and startups view mergers and acquisitions, long seen as a key path to growth and return on investment.

The lawsuit was originally filed at the end of former President Donald Trump’s first term, despite opposition from two Republican FTC commissioners at the time. Under Trump’s second term, the FTC is now chaired by Andrew Ferguson, and the agency’s makeup has shifted, raising speculation that the administration might seek a settlement. So far, no such deal has emerged.

Rohit Chopra, a Democrat who backed the original lawsuit, said the trial must go forward. “The allegations in the complaint relate to specific conduct, and we had a reason to believe that there is a violation of law,” he said. “I hope it does not result in some cheap settlement that does nothing to fix the issues that we alleged.”