Court Rejects Monopoly Claims
A US district judge in Washington ruled that Meta did not violate antitrust laws when it bought Instagram and WhatsApp more than ten years ago. The decision is a setback for the Federal Trade Commission, which sued Meta in 2020 and argued the company used these acquisitions to build dominance in social media. Judge James Boasberg wrote that the agency failed to prove its case and concluded that Meta does not hold monopoly power. Meta welcomed the ruling and said it competes in a crowded and fast-moving market.
Executives Testify on Market Competition
In April, Judge Boasberg oversaw a long bench trial featuring CEO Mark Zuckerberg and former COO Sheryl Sandberg. They argued that TikTok and YouTube changed the social-media landscape and challenged Meta’s position. The judge noted that the FTC reviewed and approved both the Instagram purchase in 2012 and the WhatsApp deal in 2014. The agency claimed Meta overpaid, spending $1 billion for Instagram and $19 billion for WhatsApp. Boasberg described a market that shifts quickly as trends rise and fade. He said the agency failed to show Meta still holds market power and pointed to the company’s shrinking share.
FTC Expresses Strong Disappointment
The FTC said it had not decided whether to appeal and voiced deep frustration. Spokesperson Joe Simonson said the agency was considering all options and argued that the process felt unfair. He referred to earlier political clashes involving the judge and noted efforts by some Republican lawmakers to remove him from office. The judge was asked for comment.
Ruling Prevents Potential Break-Up of Meta
The decision protects Meta from a forced split that could have separated Instagram and WhatsApp. Meta said its platforms support people and businesses and reflect 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 Shift in Antitrust Momentum
The ruling comes after two Justice Department victories against Google involving search and advertising technology. Still, another federal judge recently refused to require Google to divest its Chrome browser. Against this backdrop, experts say the Meta decision signals a shift in momentum. Vanderbilt professor Rebecca Haw Allensworth said the ruling could influence future cases. She added that it does not signal failure for the government’s broader antitrust efforts and described the situation as mixed.
Legal Analysts Note Case Challenges
Many observers said the FTC faced obstacles from the start. University of Georgia professor Laura Phillips-Sawyer said rapid market changes complicated the suit. She added that early comments from Zuckerberg suggested a desire to limit a rising competitor that threatened Meta’s position.
More Legal Tests Ahead for Meta
Meta still faces serious legal scrutiny. Zuckerberg must testify in a major trial examining social media’s impact 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 alleging that social-media companies design addictive features for young users despite knowing the mental-health risks.
