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Meta Seeks Dismissal of FTC Antitrust Case Over Instagram and WhatsApp Acquisitions

Meta Seeks Dismissal of FTC Antitrust Case Over Instagram and WhatsApp Acquisitions. Source: VisbyStar, CC BY-SA 4.0, via Wikimedia Commons

Meta Platforms (NASDAQ:META), the parent company of Facebook, has urged a U.S. federal judge to dismiss the Federal Trade Commission’s antitrust lawsuit accusing it of maintaining an illegal monopoly through its acquisitions of Instagram and WhatsApp. The case, currently unfolding in a Washington court, began on April 14 and centers on Meta’s dominance in the social media market.

The FTC aims to unwind Meta’s decade-old acquisitions, claiming they were strategic moves to neutralize competition. The agency cites internal emails showing CEO Mark Zuckerberg expressed concern over the growth of Instagram and WhatsApp. However, Meta argues that the FTC has failed to demonstrate that these platforms were direct threats or that the acquisitions harmed market competition.

Meta emphasized that WhatsApp was never intended to evolve into a social networking rival, a point Zuckerberg was aware of before the deal closed. The company also highlighted Instagram’s significant growth post-acquisition as evidence against anticompetitive behavior.

Meta further contended that the FTC did not adequately define the social media market, ignoring platforms like TikTok, X (formerly Twitter), YouTube, and Reddit. These platforms, according to Meta, compete for the same user attention and content engagement, challenging the notion of a distinct market limited to friends-and-family sharing apps like Facebook, Instagram, and Snapchat.

Judge James Boasberg could rule on Meta’s dismissal request based on the evidence presented so far, potentially ending the trial early. If the request is denied, both parties will submit final briefs and deliver closing arguments. A ruling against Meta could lead to a second trial to determine remedies.

The outcome of this high-profile case could reshape antitrust enforcement in the tech sector and set a precedent for future regulatory scrutiny of major acquisitions.

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