The moment has arrived for Meta’s major trial. This Monday, April 14, Mark Zuckerberg’s company is set to appear in a Washington court in a case that could shake the foundations of its empire: the Federal Trade Commission (FTC) accuses it of abusing its dominant position by acquiring Instagram and WhatsApp to cement its monopoly over social networks.
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A High-Stakes Trial for Meta
Filed five years ago during the first Trump administration, the lawsuit charges Meta with purchasing Instagram in 2012 for $1 billion and WhatsApp in 2014 for $19 billion, solely to stifle competition. If found guilty, the court could force the company to divest these two key subsidiaries, a scenario Meta is desperate to avoid.
For several months, Mark Zuckerberg has been attempting to sidestep this trial, engaging in various overtures toward the Trump administration: appointing political allies within Meta, easing content moderation, and even making significant financial contributions (one million for the current president’s inauguration). The goal was clearly to reach a settlement, which has been unsuccessful to date. The trial is set to proceed, expected to last eight weeks.
A Monopoly in the Social Network Realm?
The central issue hinges on the market definition. The FTC argues that Meta has maintained a monopoly over personal social networks for over a decade, used for staying in touch with friends and family. Conversely, TikTok and YouTube, often cited as competitors, operate in different categories.
Meta, on its part, disputes this interpretation. It highlights the ongoing innovation among its competitors. In its defense, the company also points out that the FTC had originally approved the acquisitions of Instagram and WhatsApp and argues that it cannot reverse its decision now.
The FTC Confronts a Skeptical Judge
To prevail, the U.S. agency must prove that Meta’s monopoly harms users, for instance through pervasive advertising, lack of alternatives, or a degraded user experience. It will rely in part on old emails from the top executive, in which he discussed the threat Instagram posed to Facebook: The potential impact of Instagram is truly frightening
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However, the case is shaping up to be challenging: Judge James Boasberg, presiding over the case, has already indicated that the FTC will need to address tough questions
to substantiate its claims. The outcome is far from certain, especially given the agency’s recent legal setbacks against Microsoft and Meta.