In a landmark antitrust trial that commenced in April 2025, Meta, the parent company of Facebook, Instagram, and WhatsApp, faces significant
legal challenges from the US Federal Trade Commission (FTC).
The FTC alleges that Meta's acquisitions of Instagram in 2012 and WhatsApp in 2014 were strategic moves to eliminate competition and maintain a monopoly in the social networking space.
Central to the FTC's case is the accusation that Meta engaged in a "buy or bury" strategy, aiming to neutralise potential rivals before they could threaten Facebook's dominance. Internal communications revealed during the trial include a 2008 email from CEO Mark Zuckerberg stating, "it is better to buy than compete." Such evidence suggests that the acquisitions were not merely for growth but to suppress emerging competitors.
During his testimony, Zuckerberg defended the acquisitions, asserting that they were intended to enhance user experience and that the social networking market remains highly competitive, with platforms like TikTok and YouTube posing significant challenges. He also highlighted that only 20% of Facebook and 10% of Instagram content comes from users' friends, emphasising a shift towards broader content discovery and entertainment.
The FTC seeks remedies that could include compelling Meta to divest Instagram and WhatsApp, aiming to restore competitive conditions in the market. Meta counters that such actions would undermine the investments and innovations made since the acquisitions and that the social media landscape has evolved with robust competition like TikTok and YouTube.
The outcome of this trial could have far-reaching implications for the tech industry, potentially setting precedents for how antitrust laws are applied to digital platforms and their acquisition strategies. As the proceedings continue, stakeholders across the technology and regulatory sectors closely monitor the developments, recognising the case's potential to reshape the competitive dynamics of social media.
