Introduction

The U.S. government has been pursuing a major antitrust case against Meta Platforms Inc. (formerly Facebook), alleging that the tech giant has maintained an illegal monopoly over the social networking space. The case, filed by the Federal Trade Commission (FTC), challenges Meta’s business practices, particularly its high-profile acquisitions of Instagram and WhatsApp. These purchases, the FTC claims, were not just growth strategies but part of a deliberate effort to neutralize emerging competitors.

Background: FTC’s Initial Lawsuit Against Facebook

In December 2020, the FTC first sued Facebook (now Meta), accusing the company of engaging in anti-competitive behavior. The central argument was that Facebook had systematically eliminated threats to its dominance in the social media space by acquiring competitors rather than competing with them fairly. At the heart of the lawsuit were the acquisitions of Instagram in 2012 for $1 billion and WhatsApp in 2014 for $19 billion.

According to the FTC, these moves were not standard business expansion tactics but part of a “buy or bury” strategy designed to eliminate future threats to Facebook’s market share. The government argued that without these acquisitions, both Instagram and WhatsApp could have grown into serious competitors, fostering more innovation and giving consumers more choices.

Mark Zuckerberg Testifies in Defense

In a key development, Meta CEO Mark Zuckerberg appeared in court to testify on April 15, 2025, marking a crucial moment in the years-long legal battle. This was the first time he defended the company’s past acquisition decisions under oath in this particular case.

Zuckerberg’s testimony aimed to reframe the narrative, portraying Instagram and WhatsApp as startups that needed Facebook’s resources to survive and scale. He insisted that these purchases were not meant to stifle competition but rather to integrate new and innovative technologies into Facebook’s ecosystem. He emphasized that both services flourished under Facebook’s ownership, benefiting from its engineering talent, infrastructure, and global reach.

FTC’s Key Allegations

The FTC alleges several major violations by Meta:

1. Illegal Monopoly Maintenance

The government asserts that Meta has maintained monopoly power in the personal social networking market through anti-competitive acquisitions. This includes not only buying Instagram and WhatsApp but also using internal data and aggressive tactics to identify and neutralize emerging rivals.

2. Hindering Innovation and Consumer Choice

By eliminating competition, the FTC argues that Meta stifled innovation in the social media industry. Smaller platforms that could have introduced new features or models were either acquired or pushed out of the market. As a result, users were left with fewer choices and stagnant platform development.

3. Unfair Use of Market Power

The FTC also pointed to Meta’s historical behavior, such as copying features from competitors (e.g., Snapchat’s Stories) and allegedly using Facebook’s vast user data to identify and suppress threats, as signs of its monopolistic intent.

Meta’s Defense Strategy

Meta’s legal team has focused on several counterarguments:

  • Acquisitions Were Lawful at the Time: Meta points out that both the Instagram and WhatsApp deals were reviewed and approved by federal regulators when they occurred. They argue it is unfair to retroactively declare them illegal.

  • No Monopoly Exists: Meta contends that the social media landscape is highly dynamic and competitive, citing platforms like TikTok, Snapchat, and YouTube as evidence that users have plenty of alternatives.

  • Innovation Was Fostered, Not Suppressed: The company argues that its investments in WhatsApp and Instagram helped turn them into global success stories, enhancing—not hindering—consumer experiences.

A Broader Crackdown on Big Tech

This case against Meta is part of a wider movement in the U.S. and globally to hold Big Tech companies accountable for their market power. The FTC, under the leadership of Chair Lina Khan, has taken a tougher stance on monopolistic practices in the digital economy. Other tech giants, including Google, Amazon, and Apple, are also facing similar scrutiny.

The outcome of this case could have far-reaching implications, potentially reshaping how tech mergers are evaluated in the future. If the FTC wins, it may lead to court-mandated breakups or restrictions on future acquisitions by Meta.

Potential Remedies and Implications

If Meta is found guilty of violating antitrust laws, the court could impose various remedies, including:

  • Forced Divestitures: Meta could be ordered to spin off Instagram and WhatsApp as independent companies.

  • Restrictions on Future Acquisitions: The company might be barred from acquiring startups without strict regulatory approval.

  • Behavioral Remedies: Meta could face restrictions on how it uses data or launches new features.

A ruling in favor of the FTC could embolden further antitrust actions and signal a shift in how the U.S. government approaches tech regulation, potentially leading to stricter controls on mergers and corporate expansions.