Meta wins landmark antitrust case over Instagram, WhatsApp acquisitions
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A U.S. federal judge on Tuesday ruled Meta did not break antitrust laws by illegally stifling competition through its purchases of Instagram and WhatsApp, a defining win for the tech giant as it seeks to expand its dominance in the AI era.
Why it matters: The victory means Meta won't be forced to divest two of its biggest apps, which have billions of users worldwide.
Catch up quick: The Federal Trade Commission, which sued Meta during President Trump's first administration, tried to argue in court that the tech giant shouldn't have been allowed to purchase Instagram in 2012 and WhatsApp in 2014, even though both deals were previously blessed by the FTC.
- Regulatory experts long believed the FTC's case was weak because of the way it defined the social media market.
- The FTC argued that Meta's dominance in the social media market illegally hampered competition.
- Meta argued the social media market had evolved to become much more competitive over the past few years, with new entrants such as TikTok putting real pressure on incumbents.
What they're saying: "With apps surging and receding, chasing one craze and moving on from others, and adding new features with each passing year, the FTC has understandably struggled to fix the boundaries of Meta's product market," federal judge James Boasberg wrote in his decision.
- "Even so, it continues to insist that Meta competes with the same old rivals it has for the last decade, that the company holds a monopoly among that small set, and that it maintained that monopoly through anticompetitive acquisitions."
- "Whether or not Meta enjoyed monopoly power in the past, though, the agency must show that it continues to hold such power now. The Court's verdict today determines that the FTC has not done so. A judgment so stating shall issue this day."
- A Meta spokesperson said in a statement, "The Court's decision today recognizes that Meta faces fierce competition. Our products are beneficial for people and businesses and exemplify American innovation and economic growth. We look forward to continuing to partner with the Administration and to invest in America."
The other side: Joseph Simonson, director of public affairs at the FTC, said in a statement, "We are deeply disappointed in this decision."
- "The deck was always stacked against us with Judge Boasberg, who is currently facing articles of impeachment. We are reviewing all our options."
- Boasberg has been the target of an impeachment effort by President Trump and Republicans after questioning the administration's decision to disregard an order.
Zoom out: This is the second major regulatory victory for Big Tech in the past few months.
- In September, a federal judge ruled Google won't be forced to spin off its popular Chrome browser or Android operating system in response to being found guilty of violating antitrust laws around its search dominance.
Editor's note: This story was updated to include a statement from Meta and the FTC.
