Meta must face antitrust trial by FTC: Issues with Instagram and WhatsApp acquisitions

A federal court in Washington, D.C., has ruled that the Federal Trade Commission’s (FTC) antitrust lawsuit against Meta must proceed. The lawsuit alleges that Meta has monopolized the social media market through its acquisitions of Instagram and WhatsApp.

The Verge reported on Wednesday that the FTC filed the lawsuit claiming Meta acquired Instagram and WhatsApp to stifle competition in 2020. Meta attempted to dismiss the case, but the judge allowed the FTC’s lawsuit to proceed. The court has rejected claims that Meta engaged in anti-competitive practices by limiting API access to prevent developers from competing with its apps.

Meta maintains that these acquisitions have benefited consumers and market competition. A company spokesperson stated, “We are confident that the evidence at trial will show that the acquisitions of Instagram and WhatsApp have been good for competition and consumers.” Meta argues that these deals were reviewed and approved by regulators over a decade ago and points to strong competition from platforms like YouTube, TikTok, and X as evidence of a competitive market.

The FTC’s antitrust lawsuit, which began during the Trump administration, has caught the attention of major corporations. The incoming administration is expected to adopt a more relaxed approach to merger regulations.