Media reports US government possibly to break up Zuckerberg’s Meta

(MENAFN) The U.S. Federal Trade Commission (FTC) is pursuing legal action to potentially dismantle Meta Platforms Inc., the parent company of Facebook, over allegations of monopolistic practices tied to its acquisitions of Instagram and WhatsApp. Multiple media outlets report that the trial, which began Monday in a Washington federal court, marks a significant chapter in the government’s broader campaign against Big Tech.

The FTC claims Meta used a “buy-or-bury” approach to eliminate potential competition, acquiring Instagram in 2012 for $1 billion and WhatsApp in 2014 for $19 billion. Although both purchases were initially approved by the FTC, the agency now argues they were strategic moves to block emerging rivals and secure Meta’s dominance in the social media space.

If the court rules in favor of the FTC, Meta could be required to divest Instagram and WhatsApp. Such a decision would send shockwaves through the tech industry and may trigger increased scrutiny of other large technology firms.

During the opening statements, FTC lawyer Daniel Matheson said Meta has continued to earn massive profits while user satisfaction has declined. He highlighted internal emails from 2011 and 2012 in which then-Facebook CEO Mark Zuckerberg discussed the potential acquisition of Instagram, calling the platform “fast-growing” and later referring to its acquisition as a way to “neutralize” competition—a message Matheson labeled a “smoking gun.”

Zuckerberg, who took the stand for two consecutive days, defended the company’s actions. He described the early emails as part of initial brainstorming and insisted Meta had significantly improved Instagram post-acquisition. He also admitted that Instagram's superior camera technology at the time was a key factor in the decision to buy it.

Meta’s legal team dismissed the FTC’s accusations, arguing that the company continues to face fierce competition, particularly from TikTok, owned by China’s ByteDance.

The lawsuit is part of a broader antitrust movement that gained momentum during Donald Trump’s presidency. The original case, filed in 2020, was dismissed within six months but has since been revived. In a possible bid to improve relations with the current administration, Meta has made several overtures, including financial contributions to Trump’s inauguration and loosening content moderation policies. Notably, the company also paid $25 million in January to settle a lawsuit involving Trump’s post-Capitol riot account suspensions.

With more than 3.5 billion global users on Facebook, Instagram, and WhatsApp, the outcome of the case could have a major impact. However, legal experts expect a lengthy process, as appeals are likely regardless of the verdict.

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