Meta's Strategy Under Scrutiny

In a landmark antitrust trial, the Federal Trade Commission (FTC) has accused Meta Platforms, the parent company of Facebook, of acquiring Instagram and WhatsApp not as strategic innovations but as desperate attempts to eliminate competition. Daniel Matheson, an FTC attorney, highlighted how these purchases were made after Meta failed to develop competing services.

The FTC's Stance

The FTC argues that Meta's acquisitions have created insurmountable barriers for new entrants, stifling competition and leaving consumers with fewer choices. The agency is pushing for a drastic measure: forcing Meta to divest Instagram and WhatsApp, potentially leading to their sale.

Meta's Defense

Meta's Chief Legal Officer, Jennifer Newstead, has dismissed the lawsuit as politically motivated, defending the acquisitions as legal and beneficial for innovation and consumer choice.