- Meta faces potential breakup as U.S. antitrust trial targets Facebook’s acquisitions of Instagram and WhatsApp.
- Zuckerberg testifies in court, defending Meta’s strategy amid allegations of eliminating competition.
- FTC seeks historic ruling, aiming for the first major corporate breakup since AT&T in the 1980s.
The high-stakes antitrust trial against Meta Platforms Inc. has entered a critical phase in a U.S. federal court in Washington, D.C. Meta CEO Mark Zuckerberg returned to the witness stand for a second consecutive day, as the government seeks to dismantle his company’s hold on the social media industry. At the heart of the case is Meta’s acquisition of Instagram in 2012 and WhatsApp in 2014—moves the U.S. Federal Trade Commission (FTC) alleges were aimed at neutralizing potential rivals before they could challenge Facebook’s dominance.
The trial stems from a six-year investigation into whether Meta violated competition laws by buying out emerging threats instead of competing with them. If the FTC prevails, Meta could be forced to separate its flagship services—Facebook, Instagram, and WhatsApp—potentially fracturing its $1.4 trillion advertising empire. The government argues these acquisitions stifled innovation and consumer choice, creating a social media monopoly under Meta’s umbrella.
Despite Zuckerberg’s previous political overtures and efforts to soften regulatory pressures—including financial support for Donald Trump’s inauguration and an increased presence in Washington—the FTC has pressed forward with the case. Both the current FTC chair, appointed by Trump, and his predecessor under Biden have maintained a tough stance on Big Tech consolidation. The case, first filed in December 2020, has now become a flashpoint in the broader debate over regulating powerful tech companies.
Central to the government’s argument are internal emails in which Zuckerberg expressed concern over Instagram’s potential threat, characterizing it as a “scary” competitor. The FTC says similar motives drove the later WhatsApp acquisition. Meta, however, defends the purchases as strategic investments that brought resources and innovation to smaller platforms. Its attorneys argue that the company’s apps are free to users and face strong competition from services like TikTok, YouTube, and iMessage.
A key contention in the case lies in how the market is defined. The FTC views Meta as dominant in the realm of apps that connect friends and family, excluding broader entertainment platforms. Meta counters that it competes daily with a wide range of social and messaging services. The outcome of this trial could mark the first forced corporate breakup by the FTC in over four decades, echoing the historic dissolution of AT&T in the 1980s.
