The FTC had alleged that Meta created a monopoly in personal social networking by acquiring fast growing rivals. Regulators claimed the company used large acquisitions to limit competition and wanted Instagram and WhatsApp separated to restore market balance. This push came years after Meta completed both purchases.
The first version of the FTC’s lawsuit was dismissed in 2021 because the agency did not provide enough evidence of monopoly power. The agency returned with an amended case a year later. It described Snapchat and MeWe as Meta’s closest competitors for sharing updates with friends and family. Meta challenged that framing and said the FTC left out major platforms that shape user behavior across social media.
Judge James Boasberg agreed that the FTC’s market definition was too narrow. Evidence showed that users often moved between apps like YouTube and TikTok when Meta’s services experienced outages. The judge noted that TikTok had become such a strong competitor that Meta spent four billion dollars on Reels last year. This level of investment, driven by competitive pressure, did not match the picture of a market under one company’s control.
Meta argued that acquiring companies with strong products is a legitimate way to build new features. The court accepted that reasoning and found that the FTC had not demonstrated that these acquisitions harmed competition in the current environment. The judge pointed out that the landscape had changed since the early years of Facebook’s rise and that platforms now compete in more varied ways.
The ruling prevents the FTC from forcing divestment for now. The agency said it was disappointed and would examine its next steps. The case forms part of a much broader antitrust push against several major technology firms. Other actions are still underway, including those involving Alphabet’s Google and Apple.
For Meta, the decision removes an immediate threat to the structure of its platform group. It also brings some clarity to a question that has surrounded the company for years. The outcome does not resolve every regulatory challenge, but it does reshape how the courts view competition across today’s social apps.
Notes: This post was edited/created using GenAI tools. Image: DIW-Aigen.
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by Irfan Ahmad via Digital Information World
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