Zuckerberg risks losing Instagram in FTC antitrust lawsuit
A landmark antitrust trial against Meta, the parent company of Facebook, Instagram, and WhatsApp, began in Washington on Monday, with the U.S. Federal Trade Commission (FTC) accusing the company of illegally undermining competition by acquiring emerging rivals Instagram and WhatsApp over a decade ago.
FTC lawyer Daniel Matheson argued that Meta strategically purchased its competitors rather than competing with them, describing the acquisitions as an effort to eliminate threats to Facebook’s dominance. He cited a 2012 internal memo from CEO Mark Zuckerberg discussing the importance of 'neutralising' Instagram, which the FTC called a key piece of evidence.
Meta countered that the lawsuit is misguided, particularly given that both acquisitions were reviewed and approved by the FTC at the time. The company’s attorney, Mark Hansen, argued that the deals were made to strengthen the platforms and enhance the consumer experience. He emphasised that similar acquisitions have never been deemed unlawful and should not be judged differently now.
Should the FTC succeed, Meta could be required to divest Instagram and WhatsApp, potentially resulting in the breakup of its core platforms.
The FTC alleges that Meta overpaid for the platforms, $1 billion for Instagram in 2012 and $19 billion for WhatsApp in 2014, to neutralise competition. Antitrust law professor Rebecca Haw Allensworth from Vanderbilt University noted that Zuckerberg’s internal communications, including his suggestion that buying competitors was preferable to competing with them, may serve as compelling evidence for the prosecution.
Meta maintains that it still faces significant competition from other apps, including TikTok, X (formerly Twitter), YouTube, and Apple’s iMessage. Zuckerberg and former Chief Operating Officer Sheryl Sandberg are expected to testify during the proceedings, which may extend for several weeks.
The lawsuit, FTC v. Meta, was initiated during former President Donald Trump’s first term and now moves forward during his second. Meta has reportedly lobbied the administration to withdraw the case , an effort the company has not confirmed. However, in response to questions, Meta stated that reviving the case sends a message that regulatory approval may no longer offer certainty to businesses.
Meta's relationship with Trump has shifted over the years, particularly after Trump was banned from the platform following the 6 January 2021 Capitol riots. Recently, the dynamic has appeared to improve. In addition to a $1 million donation to Trump’s inaugural fund, Meta appointed two Trump allies, Dana White, head of the UFC, and former adviser Dina Powell McCormick, to its board in 2025. Earlier this year, Meta also dropped its independent fact-checking programme and agreed to pay $25 million to settle a lawsuit related to Trump’s account suspension.
Political tension around the FTC case has intensified following the dismissal of two Democratic commissioners, Rebecca Kelly Slaughter and Alvaro Bedoya, in March. Both are pursuing legal action to be reinstated, claiming the dismissals may have been politically motivated. They warned that the move could be seen as an attempt to influence regulatory decisions, and expressed concerns that current commissioners might face similar consequences if they oppose political expectations.
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