May 16, 2025, 4:01 PM
May 16, 2025, 4:01 PM

Meta challenges FTC's monopoly case by claiming lack of evidence

Highlights
  • Meta argued that the FTC failed to prove that the quality of its apps has declined.
  • The company claims users prefer seeing ads and state that more ads are shown to those who engage with them.
  • Meta hopes to dismiss the trial early and avoid potential consequences like asset divestments.
Story

On May 16, 2025, Meta presented its defense in a trial related to alleged monopoly power initiated by the Federal Trade Commission (FTC). The company asserted that the FTC did not demonstrate any significant decline in the quality of its apps or prove that it overwhelmed users with ads. In its motion to dismiss the trial early, Meta argued that the FTC did not provide a clear standard for an acceptable number of ads nor evidence that it showed more ads than competitors might in a thriving market. Meta’s insistence that users enjoy ads and that ads primarily target those who interact with them formed a central part of its argument. Furthermore, Meta contended that there is no precedent for ruling monopoly power based solely on claims of product degradation. During the trial, discussions also highlighted how Meta's acquisitions, such as Instagram and WhatsApp, transformed those platforms, claiming improvements rather than enshittification as critics suggest. The outcome of the trial could have significant implications for Meta, potentially insulating it from being forced to divest its acquired assets, depending on the ruling from Judge James Boasberg. Should Boasberg dismiss the case based on Meta's arguments that TikTok is a more formidable rival than others, it will allow Meta to sidestep any damaging revelations and legal vulnerabilities regarding its internal communications that the trial might otherwise expose. The FTC, however, is expected to press forward with the trial, which was initially supposed to conclude in June, focusing on the necessity of enforcing competitive practices in the tech industry, asserting that a victory could ultimately lead to the break-up of Meta's integrated services.

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