Judge Rejects Monopoly Allegations
A US district judge in Washington ruled that Meta did not violate antitrust laws when it acquired Instagram and WhatsApp more than a decade ago. The decision delivers a setback to the Federal Trade Commission, which sued Meta in 2020, claiming the purchases allowed the company to dominate 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 stressed that it faces strong competition in a fast-moving market.
Executives Point to Rapid Market Changes
In April, Judge Boasberg presided over a lengthy bench trial that included testimony from CEO Mark Zuckerberg and former COO Sheryl Sandberg. They said TikTok and YouTube reshaped the social-media landscape and challenged Meta’s influence. The judge noted that the FTC reviewed and approved Meta’s Instagram purchase in 2012 and WhatsApp acquisition in 2014. The agency argued that Meta overpaid, spending $1 billion for Instagram and $19 billion for WhatsApp. Boasberg described a dynamic market where trends rise quickly and fade just as fast. He said the FTC failed to show that Meta still holds market power and pointed to the company’s shrinking share.
FTC Expresses Frustration
The FTC said it had not yet decided whether to appeal and voiced strong disappointment. Spokesperson Joe Simonson said the agency was reviewing all options and claimed the process felt unfair. He referenced previous political disputes involving the judge and noted efforts by some lawmakers to remove him from office. The judge was asked for comment.
Ruling Protects Meta From Break-Up
The decision shields Meta from a possible forced split that could have separated Instagram and WhatsApp from the company. Meta said its platforms benefit people and businesses and reflect American innovation and growth. A spokesperson said the company plans to continue working with the administration and investing in the United States.
Experts See Shifts in Antitrust Enforcement
The ruling follows two Justice Department wins against Google involving search and advertising technology. Another judge recently declined to force Google to divest its Chrome browser. Experts said the Meta decision may influence the likelihood of future cases. Vanderbilt professor Rebecca Haw Allensworth said the ruling does not signal failure for the government’s broader antitrust efforts and described the overall picture as mixed.
Legal Scholars Highlight Early Obstacles
Many observers said the FTC faced significant challenges from the start. University of Georgia professor Laura Phillips-Sawyer said rapid changes in the market complicated the case. She added that early statements from Zuckerberg suggested a desire to neutralize a rising competitor threatening the company’s dominance.
Meta Faces Continuing Legal Pressure
Meta continues to confront major legal challenges. Zuckerberg must testify in a landmark 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 while knowing the mental-health risks.
