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Meta Faces Antitrust Trial Over Its Social Media Empire In The U.S.
Meta’s antitrust trial, one of the biggest over the past few years, began this Monday. The company’s CEO, Mark Zuckerberg, attended court to defend his company against the Federal Trade Commission’s (FTC) accusation that Meta built a monopoly through its acquisitions of Instagram and WhatsApp.
In a rush? Here are the quick facts:
- Meta’s antitrust trial began this Monday and is expected to last 8 weeks.
- The FTC is accusing Meta of illegally building a social media monopoly after purchasing Instagram and WhatsApp.
- If the U.S. government wins the case, Meta can be ordered to sell the platforms.
According to the New York Times, the trial—expected to last eight weeks—is taking place in the U.S. District Court for the District of Columbia. Zuckerberg took the witness stand on Monday, defended his company, and challenged the government’s definitions of the social media market and its accusations.
The FTC alleges that Meta—then Facebook—purchased its rivals, Instagram in 2012 for $1 billion and WhatsApp in 2014 for $19 billion, above the market’s value, to cement its dominance in the social media market, and breaking the law.
If the U.S. government wins the trial, it will force Meta to sell Instagram and WhatsApp, affecting the company’s business model, structure, and its 3.5 billion users. However, legal experts consider the case complex and challenging for the FTC to win.
In a blog post shared this Sunday by Jennifer Newstead, Meta’s Chief Legal Officer, the company’s team referred to the lawsuit as “weak” and a case that “ignores reality.”
Newstead explained that the acquisitions of WhatsApp and Instagram were reviewed and approved by the FTC over a decade ago, with no indication of monopolistic intent. She also noted that platforms like YouTube and TikTok are now major competitors, capturing more user attention.
“It’s absurd that the FTC is trying to break up a great American company at the same time the Administration is trying to save Chinese-owned TikTok,” wrote Newstead. “And, it makes no sense for regulators to try and weaken U.S. companies right at the moment we most need them to invest in winning the competition with China for leadership in AI.”
Meta is not the only large tech company dealing with antitrust accusations in the United States. Google is also facing a monopoly case, and the U.S. Department of Justice (DOJ) is suggesting the company sell parts of its business, including its Chrome browser and Android’s operating system. The FTC is also currently reviewing Amazon’s $380 million deal with AI start-up Covariant.
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