FTC targets Meta's acquisitions of Instagram and WhatsApp

In a high-stakes trial in Washington on April 15, 2025, the U.S. Federal Trade Commission (FTC) argued against Meta Platforms, stating that the company acquired its competitors Instagram and WhatsApp to eliminate competition after failing to compete effectively. The FTC asserts that these acquisitions created entry barriers that have maintained Meta's dominance in social media for over a decade. The case traces back to actions taken during President Donald Trump’s administration, seeking to dismantle deals made approximately ten years ago. The FTC claims that consumers lack reasonable alternatives for social networking and sharing content. The trial could have considerable implications for Meta, as it is estimated that Instagram generates over half of the company's advertising revenue in the United States. Particularly, the loss of Instagram could be devastating financially for the company, considering projections that it would yield approximately $37.13 billion in revenue in the current year. Despite this, Meta has countered that its acquisitions have ultimately benefited users and that the market landscape has changed significantly with rising competition from platforms like TikTok and Google's YouTube. The FTC maintains that competition from smaller platforms does not equate to viable alternatives for consumers. Its position emphasizes that Snap’s Snapchat and MeWe, which launched in 2016 as a privacy-focused option, do not sufficiently challenge Meta's market power. This complex legal battle is reflective of broader debates regarding the regulation of tech giants, as the government seeks to enforce antitrust laws to protect consumers and ensure market competitiveness. As the trial unfolds, anticipated testimonies may include Meta CEO Mark Zuckerberg, who has engaged with the White House suggesting a degree of favoritism towards the company and changing content moderation policies. The outcome may influence future regulations targeting big tech and reshape the landscape of social media, given the essential nature of these platforms in contemporary society and commerce. Stakeholders are closely watching this case as it threatens to redefine corporate strategies within the technology sector.