US Judge Rules Meta Did Not Violate Antitrust Laws in Instagram and WhatsApp Acquisitions
A U.S. district judge James Boasberg in Washington, D.C., has ruled that Meta Platforms did not violate antitrust laws with its acquisitions of Instagram in 2012 and WhatsApp in 2014. This ruling dismisses the Federal Trade Commission's (FTC) 2020 lawsuit alleging that Meta built a social-media monopoly through these purchases.
Judge Boasberg concluded that the FTC failed to prove Meta maintained monopoly power in the relevant market, highlighting the rapidly changing social-media landscape and Meta's shrinking market share as part of his decision. The ruling also noted that the FTC had previously approved Meta's acquisitions, undermining arguments about overpayment or anti-competitive intent.
During the bench trial held in April, Meta CEO Mark Zuckerberg and Sheryl Sandberg testified about competition from platforms like TikTok and YouTube. Meta welcomed the ruling, viewing it as recognition of fierce competition and as a prevention of the breakup of Instagram and WhatsApp.
Meanwhile, the FTC expressed disappointment and said it is reviewing its options for appeal, suggesting that the legal framework was not favorable to their case. Legal observers have indicated that while the ruling shifts momentum in this high-profile case, it does not signify a broad failure of antitrust enforcement, particularly amidst the challenges posed by rapidly evolving tech markets.
