Historic Antitrust Trial Looms for Meta

The highly anticipated antitrust trial against tech titan Meta kicks off in Washington today, potentially leading to massive changes in the social media landscape. The U.S. Federal Trade Commission (FTC) alleges that Meta, which owns Facebook, strategically acquired Instagram in 2012 and WhatsApp in 2014 to crush competition and establish a monopoly.

A Stakes-Raising Legal Battle

If the FTC emerges victorious, it could compel CEO Mark Zuckerberg to part ways with both Instagram and WhatsApp. While Meta confidently asserts it will prevail, experts suggest the case might hinge on Zuckerberg's own past statements, including a revealing email where he noted, "It's better to buy than to compete." Professor Rebecca Haw Allensworth of Vanderbilt Law School highlights this as critical evidence that could sway jurors.

The Stakes for Consumers and Competition

Meta argues that the focus should be on whether consumers are better off post-acquisition, claiming that Instagram has flourished under Facebook's ownership. As the trial unfolds, Zuckerberg and former COO Sheryl Sandberg are expected to take the stand, adding an element of drama to the proceedings that could last several weeks.

Political Dynamics at Play

Filed during Donald Trump's presidency, the FTC v. Meta case has become increasingly politicized. Reports suggest that Zuckerberg lobbied Trump personally to intervene in the case. Meta’s spokesperson dismissed the FTC's actions as unrealistic, arguing that their acquisitions were cleared over a decade ago.

Shifts in FTC Leadership Spark Concerns

The political backdrop intensifies further with recent moves by the Trump administration that ousted two FTC commissioners, raising suspicions about political influence in the case. Commissioners Rebecca Kelly Slaughter and Alvaro Bedoya claim their dismissals were intended to intimidate, raising the stakes for the trial.

An Uphill Battle for the FTC

As the FTC gears up for this challenging trial, it faces a tough road ahead. Experts assert that proving Meta’s monopolistic intent will be more difficult compared to other ongoing antitrust cases, such as the ongoing USA v Google trial, which recently found Google guilty of holding a search monopoly.

Will the FTC Succeed?

While the FTC has previously reclaimed hundreds of millions for victims of fraud, commentators say this case may prove more complex. Laura Phillips-Sawyer, a business law professor, emphasizes that competition exists within the personal networks space, making the path to divesting Instagram or WhatsApp less straightforward. As Meta maintains that its platforms face stiff competition from global players like TikTok and YouTube, all eyes will be on the courtroom for this monumental trial that could reshape the future of social media.