FTC Challenges Meta's Acquisitions in Landmark Antitrust Trial

In a revealing start to a pivotal antitrust trial in Washington, a US Federal Trade Commission (FTC) attorney disclosed that Meta Platforms, the parent company of Facebook, resorted to acquiring Instagram and WhatsApp only after failing to develop competing services internally.

The FTC's Argument: The agency posits that these acquisitions were not part of a strategic innovation plan but rather desperate attempts to eliminate potential future competitors, thereby cementing Meta's dominance in the social media landscape. Daniel Matheson, representing the FTC, emphasized to the court that such actions have erected formidable barriers to entry, significantly limiting consumer choices.

Meta's Defense: Countering the allegations, Meta's Chief Legal Officer, Jennifer Newstead, dismissed the lawsuit as a politically motivated maneuver, undermining the company's strategic business decisions.

The Potential Outcome: Should the FTC prevail, Meta could be compelled to divest its acquisitions, leading to the possible sale of Instagram and WhatsApp, a scenario that could reshape the digital ecosystem.