Mon, 14 Apr 2025

Mon, 14 Apr 2025 Meta antitrust case could force sale of Instagram

The case against Facebook owner Meta alleges the company bought Instagram and WhatsApp to wipe out competition.
A high-stakes trial has begun against Meta, the parent company of Facebook and Instagram, over allegations that it abused its power by acquiring rival companies. The US Federal Trade Commission (FTC) claims that Meta bought Instagram for $1 billion and WhatsApp for $19 billion as a way to "neutralize" competition. The FTC argues that this was an anti-competitive move that has resulted in the dominance of Facebook over other social media platforms. Meta, on the other hand, says it made these acquisitions to improve and grow its services, not to stifle competition. The company claims that it faces competition from many other apps, including TikTok, YouTube, and iMessage. If the FTC wins the case, Meta could be forced to break up the company or spin off Instagram and WhatsApp as separate entities. This could result in Mark Zuckerberg losing control of some of his most valuable assets. The trial has been ongoing for years, but it's taken on a new significance with the recent appointments of Trump loyalists to key positions within the FTC. Critics argue that this is an attempt by the current administration to intimidate and influence the agency. Experts say that the case will be tough for the FTC to win, as there are many competing apps in the social media space. However, if the commission can prove that Meta's acquisitions were made with anti-competitive intentions, it could have significant implications for the tech industry as a whole.
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