A U.S. district judge in Washington has determined that Meta Platforms, the parent company of Facebook, did not breach antitrust laws concerning its acquisitions of Instagram in 2012 and WhatsApp in 2014. This ruling represents a setback for the Federal Trade Commission (FTC), which had filed a lawsuit against Meta in 2020, alleging that the company had secured a monopoly in social media by acquiring its competitors.
Judge James Boasberg stated that the FTC had not demonstrated that Meta holds a monopoly in the relevant market. The court noted that the FTC had previously approved both acquisitions. The FTC argued that Meta had overpaid, acquiring Instagram for $1 billion and WhatsApp for $19 billion. In reviewing the competitive landscape, Judge Boasberg characterized it as dynamic, with various apps rapidly rising and falling in popularity, and highlighted that even if Meta previously held significant market power, the FTC had not proven that this was still the case.
Following the ruling, the FTC expressed disappointment and indicated it was considering its options, including whether to appeal. The agency’s director of Public Affairs mentioned concerns about the fairness of the judicial process, particularly regarding Judge Boasberg.
With this decision, Meta avoids the possibility of being forced to divest Instagram and WhatsApp. The ruling follows previous antitrust actions against Google but contrasts with a recent decision where a judge refused to compel Google to divest its Chrome browser. Legal experts have noted the complexities of the FTC case against Meta, marked by the rapidly evolving nature of social media.
In addition, Meta’s legal troubles are ongoing, with CEO Mark Zuckerberg required to testify in a separate case addressing the influence of social media on young people’s mental health.
Source: https://www.bbc.com/news/articles/crklgrpdke8o?at_medium=RSS&at_campaign=rss