Meta Platforms Inc. is set to face an unprecedented antitrust trial starting Monday, which might compel the technology behemoth to divest itself of Instagram and WhatsApp—two acquisitions made over ten years ago that have since become major players in the realm of social media.
The impending antitrust trial will serve as the initial significant examination of President Donald Trump’s Federal Trade Commission’s capacity to confront major technology corporations. The legal action, initiated against Meta—formerly known as Facebook—in 2020 during Trump’s presidency, alleges that the firm acquired Instagram and WhatsApp with the intent to eliminate rivals and create an unlawful monopoly within the social media sector.
The FTC contends that Meta has sustained a monopoly by following CEO Mark Zuckerberg’s strategy, which was stated in 2008: “‘It is preferable to acquire competitors rather than engage in direct competition.'” Consistent with this approach, Facebook has consistently monitored possible adversaries and purchased firms it perceived as significant competitive risks.
The FTC alleges in its complaint that Facebook implemented strategies aimed at making it challenging for lesser competitors to join the market and “mitigate potential competitive challenges,” precisely when global focus transitioned from desktops to mobile devices.
The FTC states that unable to sustain its dominance through fair competition, the company’s leaders tackled the existential challenge by acquiring emerging innovators that had succeeded where Facebook fell short,
In 2012, Facebook acquired Instagram, which was then an ad-free photo-sharing application with a modest but dedicated user base. The acquisition cost of $1 billion in cash and stocks was quite striking back then; however, the deal’s worth decreased to around $750 million when Facebook’s share prices dropped post its IPO in May 2012.
Instagram was the initial acquisition made by Facebook that they maintained as an independent application. Prior to this, Facebook had been focused on small-scale “acqui-hire” deals—a common practice in Silicon Valley where companies buy startups primarily to acquire their skilled workforce before closing them down. Two years afterward, Facebook repeated this strategy when it acquired the messaging service WhatsApp for $22 billion.
WhatsApp and Instagram aided Facebook in transitioning its operations from desktops to mobile platforms, ensuring continued appeal among younger demographics despite competitors such as Snapchat (a company it unsuccessfully attempted to acquire) and TikTok entering the scene. Nonetheless, the FTC defines Meta’s competitive landscape quite narrowly, omitting firms like TikTok, YouTube, and Apple’s iMessage services when assessing potential threats to Instagram and WhatsApp.
The FTC faces the challenging task of defining the specific market where they argue Meta holds significant power, regardless of whether they look back ten years, five years, or consider current conditions,” explained Paul Swanson, an antitrust lawyer with the firm Holland & Hart. “I believe this task has become increasingly complex over time due to the growing number of potential rivals emerging within the realm of social media platforms.
Meanwhile, Meta states that the FTC’s lawsuit “contradicts reality.”
The evidence presented during the trial will demonstrate what all 17-year-olds worldwide understand: platforms such as Instagram, Facebook, and WhatsApp vie for user attention alongside competitors owned by Chinese entities like TikTok, YouTube, X, and iMessage, among numerous others. Over ten years since the Federal Trade Commission last examined and approved our mergers, their current intervention implies that no business transaction can be considered permanently concluded. Instead of fostering American ingenuity, regulators appear intent on dismantling a leading U.S.-based firm and potentially bolstering China’s position in crucial areas such as artificial intelligence,” stated the corporation.
Last week’s submission highlighted that Meta emphasized the FTC “needs to demonstrate that Meta currently holds monopoly power within its specified market, rather than at any point in the past.” Experts suggest this might be difficult as numerous new players have entered the social media arena following the acquisition of WhatsApp and Instagram by the firm.
The outcome of Meta’s situation will be determined by U.S. District Judge James Boasberg. He previously rejected Meta’s plea for a summary judgment towards the end of last year and decided that the case needs to proceed to trial.
Boasberg appears to be doubtful about the FTC’s limited market definition based on his previous judgments, according to Swanson. Additionally, the judge mentioned that this is a ‘fact question,’ indicating that he is willing to listen to arguments from both the FTC and their experts regarding the specific market delineation.
Although the FTC might struggle to win its case, the consequences for Meta could be significant, as its advertising revenue might decrease by up to 50% if it’s required to separate from Instagram.
According to Emarketer analyst Jasmine Enberg, Instagram has become Meta’s top revenue generator within the United States—their highest-earning market—where the platform accounted for 50.5% of the firm’s advertising income in 2025. She noted that over time, Instagram has taken on additional responsibilities regarding user engagement, notably attracting younger demographics who have drifted away from Facebook.
Enberg added that this move coincides with Meta’s efforts to reintroduce classic features associated with early versions of Facebook in order to attract Generation Z and even younger audiences entering the world of social networking platforms. Today’s landscape shows significantly greater diversity across various social networks compared to what existed ten years ago at the time of Facebook acquiring Instagram. Consequently, sites like Facebook aren’t considered trendy hotspots frequented by university students these days. As such, Instagram remains crucial for Meta’s growth strategy, especially considering how many businesses prefer starting their campaigns directly through Instagram rather than using broader Meta budget allocations.
However, Meta is not the sole tech corporation under scrutiny from federal antitrust authorities; Google and Amazon also confront their respective legal challenges. The remedial stage for Google’s lawsuit is set to commence on April 21st. Previously, in August, a federal judge ruled that the search engine leader was operating as an unlawful monopoly.
The main point being discussed is our use of 19th-century legislation for regulating 21st-century market dynamics. It remains uncertain if judicial advancements in antitrust law can adapt swiftly enough to the rapidly evolving nature of modern markets—especially within the tech sector which is particularly agile and changeable,” stated Swanson. “This case will address precisely that issue.
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