Meta Must Face Trial Over Alleged Social Media Monopoly
Meta Platforms, the owner of Facebook, must face trial in a US Federal Trade Commission (FTC) lawsuit seeking its break-up over claims that it bought Instagram and WhatsApp to crush emerging competition in social media, a judge in Washington ruled on Wednesday (Nov 13).
Background
The FTC lawsuit, filed in 2020 during the Trump administration, alleges that Meta acted illegally to maintain its social network monopoly. The company is accused of overpaying for Instagram in 2012 and WhatsApp in 2014 to eliminate nascent threats instead of competing on its own in the mobile ecosystem.
Ruling
Judge James Boasberg largely denied Meta’s motion to end the case, allowing the FTC’s claim that Meta bought Instagram and WhatsApp to eliminate competition to stand. However, Boasberg dismissed the FTC’s allegation that Meta bolstered its dominance by restricting third-party app developers’ access to the platform unless they agreed not to compete with its core services.
Reaction
A Meta spokesperson said, “We are confident that the evidence at trial will show that the acquisitions of Instagram and WhatsApp have been good for competition and consumers.”
FTC spokesperson Douglas Farrar said, “The case filed during the Trump administration and refined under Biden represents a bipartisan effort to curtail Meta’s monopoly power and restore competition to ensure freedom and innovation in the social media ecosystem.”
Next Steps
At trial, Meta will not be allowed to argue that the WhatsApp acquisition boosted competition by strengthening its position against Apple and Google. The judge said he would release a detailed order later on Wednesday after the FTC and Meta have had a chance to redact any sensitive commercial information. A trial date has not been set.
Conclusion
The ruling is a significant setback for Meta, which had sought to dismiss the case. The trial will now proceed, with the FTC seeking to break up Meta and restore competition in the social media market.
Frequently Asked Questions
Q: What is the FTC lawsuit alleging against Meta?
A: The FTC lawsuit alleges that Meta acted illegally to maintain its social network monopoly by buying Instagram and WhatsApp to eliminate emerging competition.
Q: What is the significance of the ruling?
A: The ruling allows the FTC’s claim that Meta bought Instagram and WhatsApp to eliminate competition to stand, and means that Meta will have to face trial to defend its actions.
Q: What is the next step in the process?
A: The trial will now proceed, with the FTC seeking to break up Meta and restore competition in the social media market. A trial date has not been set.
