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Meta Wins Antitrust Case, Judge Rules It's Not a Monopoly
Meta wins its antitrust case against the FTC, with a federal judge ruling it is not a monopoly and can retain ownership of Instagram and WhatsApp.
Key Points
- Meta wins its antitrust case against the FTC, with a federal judge ruling it is not a monopoly and can retain ownership of Instagram and WhatsApp.
- The court's ruling highlighted the rise of competitors like TikTok, which fundamentally undercut the FTC's argument that Meta holds a monopoly.
- The decision marks a significant loss for the FTC, raising questions about the agency's strategy for applying antitrust law to the tech sector.
A federal judge handed the Federal Trade Commission a major blow, ruling that Meta is not a social media monopoly and can keep Instagram and WhatsApp. The decision ends a five-year legal battle and, as reported by Bloomberg, spares the company from a forced sell-off of its acquisitions.
The TikTok effect: The court's opinion dismantled the FTC’s core argument that Meta illegally dominated a narrow “personal social networking” market. Judge James Boasberg sided with Meta, pointing to a radically different competitive field and stressing that the rise of TikTok, in particular, fundamentally undercut the government's case. “Even if YouTube is out, including TikTok alone defeats the FTC’s case,” Boasberg wrote.
The smoking gun misfires: The FTC built its 'buy-or-bury' case around evidence like a 'smoking gun' email from CEO Mark Zuckerberg where he discussed neutralizing competitors. But the court's decision ultimately hinged on the present-day market, ruling that regardless of Meta's past dominance, the FTC failed to prove it operates as a monopoly now.
A stacked deck: While Meta’s chief legal officer Jennifer Newstead said the decision “recognizes that Meta faces fierce competition,” the FTC expressed deep frustration. The agency is reviewing its options, with spokesperson Joe Simonson adding, “The deck was always stacked against us with Judge Boasberg, who is currently facing articles of impeachment.”
The ruling is a significant victory for Meta, solidifying its corporate structure for the foreseeable future. For the FTC, it's a major setback that raises questions about the agency's ability to apply traditional antitrust law to the fast-changing tech industry.
The decision comes just months after Google avoided the harshest penalties in its own antitrust case, highlighting a challenging environment for regulators. This is also the FTC's second recent antitrust loss to Meta, following a failed attempt to block its acquisition of VR fitness company Within.
