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US court dismisses FTC antitrust case against Meta over Instagram, WhatsApp deals
A federal judge in Washington ruled Tuesday that Meta Platforms did not violate antitrust laws with its acquisitions of Instagram in 2012 and WhatsApp in 2014, dealing a significant setback to the Federal Trade Commission's (FTC) efforts to dismantle the tech giant's dominance in social media.
Judge cites shifting market dynamics
In a 53-page ruling, US District Judge James Boasberg concluded that the FTC failed to prove Meta holds a monopoly in the social media market, noting the rapid evolution of the industry. "The agency has not carried its burden," Boasberg wrote, emphasizing that platforms like TikTok and YouTube have reshaped competition since the acquisitions.
The judge also highlighted that the FTC had previously approved both deals-Instagram for $1 billion and WhatsApp for $19 billion-before later alleging they stifled competition. Boasberg questioned whether Meta's market power, even if it existed in the past, persists today, pointing to evidence that the company's share "seems to be shrinking."
Meta celebrates victory; FTC weighs appeal
Meta welcomed the decision, stating it "recognizes that Meta faces fierce competition" and underscores the value of its products for users and businesses. A company spokesperson told the BBC the ruling reflects "American innovation and economic growth."
The FTC expressed disappointment, with Public Affairs Director Joe Simonson calling the outcome "deeply disappointing" and hinting at a potential appeal. Simonson criticized Boasberg, alleging bias due to the judge's past clashes with the Trump administration and an ongoing Republican-led impeachment effort. The BBC has requested comment from Boasberg.
Broader implications for antitrust enforcement
The ruling follows mixed results in recent high-profile antitrust cases. While the Department of Justice secured victories against Google over search and advertising monopolies, a separate judge declined to force a spinoff of Google's Chrome browser. Rebecca Haw Allensworth, an antitrust professor at Vanderbilt Law School, described Tuesday's decision as a "change in momentum" that could deter future cases-but cautioned it doesn't signal a broader failure of antitrust enforcement.
Legal experts noted the FTC's case faced inherent challenges. Laura Phillips-Sawyer of the University of Georgia School of Law told the BBC the suit was "always a difficult one," given the social media market's volatility. However, she added that internal Meta communications, including statements by CEO Mark Zuckerberg, suggested the acquisitions were intended to neutralize emerging competitors.
Meta's legal battles continue
Despite this win, Meta remains entangled in litigation. Zuckerberg has been ordered to testify in a January trial examining social media's impact on youth mental health, after a California judge rejected Meta's request to avoid an in-person appearance. Instagram head Adam Mosseri is also scheduled to testify in the case, which alleges Meta and other platforms design addictive features despite knowing the risks to young users.
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