Meta wins US Antitrust Case: Meta Platforms, the parent company of Facebook, scored a legal win on Tuesday when a federal judge ruled that it does not have a social media monopoly. This decision defeated a US attempt to undo Meta’s acquisitions of Instagram and WhatsApp. US District Judge James Boasberg ruled in Meta’s favor in a major antitrust case filed by the US Federal Trade Commission (FTC) in 2020 and ending in May.
Meta wins US Antitrust Case: What does the ruling state?
The ruling gives the tech giant its first decisive win against the antitrust crackdown started in President Donald Trump’s first term. This is also major setback for the U.S. Federal Trade Commission, which is pursuing a separate antitrust case against Amazon.com. The US agency wanted Meta to restructure or sell Instagram and WhatsApp, claiming the company spent billions to remove potential competitors.
“The landscape that existed only five years ago when the Federal Trade Commission brought this antitrust suit has changed markedly,” said Judge Boasberg. “While it once might have made sense to partition apps into separate markets of social networking and social media, that wall has since broken down.” He further added, “Whether or not Meta enjoyed monopoly power in the past, though, the agency must show that it continues to hold such power now. The Court’s verdict today determines that the FTC has not done so.”
What does it mean for WhatsApp and Instagram?
Meta’s decisive win means that the company will be able to continue operating WhatsApp and Instagram with any obstruction. If the agency had proven its claims and won in the court, Meta would beenforced to separate WhatsApp and Instagram into independent companies. Meta had bought WhatsApp for $19 billion in 2014.
What was Meta accused of?
Meta was accused of systematically tracking and purchasing companies that it viewed as competitive threats. This echoed Meta CEO Mark Zuckerberg’s 2008 saying, “It’s better to buy than compete.”
