US Court Rejects Antitrust Lawsuit Against Meta
A US court dismissed the lawsuit filed by the American antitrust regulator against Meta, which accused the company of monopolizing the social media market by acquiring competitors.
Court’s Position and Key Decisions
The regulator initially argued that the acquisitions of Instagram in 2012 for $1 billion and WhatsApp in 2014 for $19 billion allegedly allowed Meta to strengthen its position on the market. However, the court concluded that the company does not hold a monopoly given the significant growth of TikTok and YouTube.
The case materials also state that the regulator itself approved these deals in 2012 and 2014, while the lawsuit was filed only in 2020.
Proceedings
The hearings were held in the Washington District Court under Judge James Boasberg. Meta CEO Mark Zuckerberg and former Chief Operating Officer Sheryl Sandberg testified, emphasizing rising competition from short-form video and new formats.
The judge noted the shifting nature of the social media market, where platforms quickly gain popularity and just as quickly lose it. According to him, even if Meta held significant influence in the past, the company’s market share is now decreasing.
Arguments Presented
| Party | Key Arguments |
|---|---|
| FTC (regulator) | Claimed that the acquisitions of Instagram and WhatsApp helped Meta secure a dominant position; pointed to possible overpayment for the purchases. |
| Meta | Highlighted growing competition from TikTok and YouTube, stating the market is volatile and the company does not hold monopoly power. |
| The Judge | Concluded that the regulator failed to prove the existence of a current monopoly, emphasizing market changes and the regulator’s prior approval of the deals. |
Reactions and Next Steps
Following the decision, the commission expressed deep disappointment and is considering filing an appeal. Meta, meanwhile, welcomed the ruling and noted that the company faces strong competition.
Highlights From Statements
- The FTC voiced disappointment and is reviewing possible next steps
- Meta emphasized increased competition and said its products benefit people and businesses
- The judge pointed to the fast-changing nature of the social media market and Meta’s shrinking share
Related Proceedings
The ruling aligns with a series of antitrust cases in the tech sector, including cases against other major companies. Had the regulator prevailed, the company could have faced a forced breakup with possible divestiture of Instagram and WhatsApp — a scenario now avoided.