The US Federal Trade Commission, which is pursuing a separate antitrust action against Amazon.com, has suffered a significant blow as a result of the verdict, which gives Big Tech its first clear victory over the antitrust crackdown initiated during President Donald Trump’s first term. The agency claimed that Meta spent billions of dollars on the acquisitions to get rid of up-and-coming rivals and attempted to compel the business to restructure or sell Instagram and WhatsApp in order to restore competition. Following the announcement, Meta shares limited their losses and were down just 0.3% at $599.95 in late afternoon trading. A representative for Meta stated, “Our products are beneficial for people and businesses and exemplify American innovation and economic growth.”
“We are excited to continue investing in America and working with the Administration.” FTC spokesman Joe Simonson stated, “We are deeply disappointed in this decision and are reviewing all our options.” In 2012, Facebook acquired Instagram, then in 2014, it acquired WhatsApp. The FTC sued in 2020, claiming that Meta, then known as Facebook, had a monopoly on US platforms used to exchange content with friends and family. At the time, the FTC did not attempt to prohibit the agreements. The agency claimed that Snap’s Snapchat and MeWe, a small privacy-focused social media app that debuted in 2016, and notable sites like X, TikTok, YouTube, and Reddit, where users broadcast material to strangers based on shared interests, were Meta’s primary rivals in that market.
The FTC cited Facebook’s remarks regarding the transactions during a trial in April, citing a 2008 email in which CEO Mark Zuckerberg stated that “it is better to buy than compete.” Meta claimed that the FTC had disregarded competitive pressure from a number of companies, including Apple’s messaging app, Google’s YouTube, and ByteDance’s TikTok. Additionally, it defended its purchases by claiming that it was a legitimate business strategy to purchase businesses that excel in new features rather than creating rival goods. In general, US District Judge James Boasberg in Washington concurred with Meta that social media has changed since Facebook was primarily used for personal status updates. This heap of crushed, non-recyclable plastic debris was about to be burned or dumped in a landfill.
Boasberg stated, “The landscape that existed only five years ago when the Federal Trade Commission brought this antitrust suit has changed markedly,” citing evidence presented during the trial that demonstrated customers replaced Meta’s apps with YouTube and TikTok and vice versa during disruptions. The judge pointed out that Meta had to invest $4 billion on Reels, its short video-sharing tool, last year due to TikTok’s intense competitive threat. According to Boasberg, the FTC mistakenly barred YouTube and TikTok from the market where Meta’s hegemony was in question. “Including TikTok alone defeats the FTC’s case, even if YouTube is out,” the judge declared. “With Judge Boasberg, who is currently facing articles of impeachment, the deck was always stacked against us,” Simonson of the FTC stated on Tuesday.
As Washington’s top federal judge, Boasberg has presided over a number of well-known cases against the Trump administration. U.S. Chief Justice John Roberts issued a rare rebuke when Trump called for Boasberg’s impeachment earlier this year. Boasberg’s impeachment has also been demanded by a few Republican members of the US House of Representatives.
