Bad news for Meta founder Mark Zuckerberg, may lose Instagram and WhatsApp in…, also challenge for Sundar Pichai’s Google, Jeff Bezos’s Amazon due to…
Meta, formerly known as Facebook, is facing a historic antitrust trial that can force it to separate from Instagram and WhatsApp. These platforms, which were acquired 10 years ago, are now the leading revenue source for the company.
This lawsuit has been going on since 2020, during the presidency of Donald Trump, when the Federal Trade Commission (FTC) filed a case against Meta. The FTC accused the company of acquiring Instagram and WhatsApp with the intent to reduce competition and establish a monopoly in the social media market.
According to the FTC, Meta’s CEO Mark Zuckerberg implemented a strategy of ‘buying rather than competing which might have given them a threat in future. FTC claimed, with this approach, Meta acquired Instagram in 2012 and WhatsApp in 2014.
Why Instagram And WhatsApp Under Scrutiny?
In 2012, Facebook purchased Instagram, which was a small photo-sharing app, for approximately $1 billion. Two years later, it acquired WhatsApp for $22 billion. These acquisitions helped Facebook maintain its popularity among mobile users.
The FTC argues that Facebook deliberately bought emerging companies that had the potential to become its competitors. However Meta responded to them claiming the lawsuit is ‘divorced from reality’ and stated that Instagram, WhatsApp, and Facebook are actively competing with platforms like TikTok, YouTube, iMessage, and X (formerly Twitter).
If the court rules against Meta, the company may be forced to divest Instagram and WhatsApp. It will have a major impact on its revenue. According to reports by 2025, Instagram alone is projected to give 50.5% of Meta’s ad revenue in the U.S.
Impact On Tech Industry
The ruling of the court in this matter will not only impact Meta but also other tech giants like TikTok, Snapchat, and YouTube in the social media market. It will be a historical case for the tech industry and set new parameters for Google and Amazon.
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