Meta has just won a major antitrust case against the Federal Trade Commission (FTC) over its acquisitions of Instagram and WhatsApp. A federal judge ruled that Meta did not illegally stifle competition by buying the two apps, dismissing the FTC’s claims.
The FTC had argued that Meta’s acquisitions of Instagram and WhatsApp in 2012 and 2014, respectively, were attempts to eliminate competition and maintain its social networking monopoly.
However, Meta countered that it competes with a wide range of apps, including TikTok and YouTube, and that its acquisitions were a legitimate business strategy.
The judge agreed with Meta, finding that the FTC’s market definition was too narrow and failed to account for the rapidly evolving social media landscape.
The ruling is a significant win for Meta, as it avoids the possibility of being forced to sell off Instagram and WhatsApp.
The ruling, delivered by a U.S. district court, marks a major setback for regulators and a coalition of state attorneys general who had argued that Meta’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were fundamentally anticompetitive.
They contended that the company, then known as Facebook, strategically purchased these emerging rivals to neutralise future threats and maintain its dominance in the social networking landscape.
In his decision, the judge found that the FTC and state plaintiffs failed to provide sufficient evidence that Meta held a monopoly power in the personal social networking market and that its conduct illegally harmed competition.
The court was not persuaded by the core argument that the acquisitions themselves were illegal, noting the significant scrutiny they underwent at the time of purchase.
