Meta faces antitrust lawsuit over Instagram and WhatsApp purchases

In April 2025, the U.S. government commenced an antitrust trial against Meta Platforms Inc., the tech giant owned by Mark Zuckerberg, in Washington, D.C. The lawsuit, which follows a six-year investigation by the Federal Trade Commission (FTC), alleges that Meta's acquisitions of Instagram in 2012 and WhatsApp in 2014 were illegal maneuvers aimed at eliminating competition in social media. The FTC claims these transactions allowed Meta to maintain a monopolistic control over social media platforms, thereby suppressing competitors and depriving users of privacy and quality services. The trial will examine whether Facebook's purchases established a monopoly under the Sherman Antitrust Act of 1890, with the government presenting evidence that suggests these acquisitions were intentional strategies to neutralize rising competitors. Internal documents, including a 2008 email from Zuckerberg that stated, ‘It is better to buy than compete,’ are expected to form a critical part of the government’s argument. The FTC holds that this demonstrated a systematic approach by Meta to eliminate competition, claiming that the company's monopoly power has undermined user privacy and stifled innovative alternatives. While initially approved by regulatory bodies, the FTC maintains that the outcomes of these acquisitions warrant reevaluation in light of evolving market dynamics and consumer welfare. Meta, however, argues that the current market is diverse, highlighting competition from platforms such as TikTok and YouTube. It also posits that breaking up the company could negatively impact user privacy, given the integrated nature of its services. Tests of this claim may arise as former executives, including Zuckerberg and Sheryl Sandberg, are expected to testify during the long trial. The potential ramifications of this case are significant, with experts suggesting that a verdict in favor of the FTC could fundamentally alter the social media landscape and lead to a renaissance of start-ups, reminiscent of the early days of social media. The outcome may dictate whether Meta is compelled to spin off its lucrative platforms, effectively reassessing its power in a rapidly changing technological environment. This trial also highlights ongoing tensions between large tech firms and regulatory bodies as the government intensifies its scrutiny over perceived monopolistic practices in Silicon Valley.