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FTC v. Meta live: updates from the battle for Instagram and WhatsApp

FTC v. Meta live: updates from the battle for Instagram and WhatsApp

  • Meta is facing an existential antitrust trial, where it’s being sued by the FTC to unwind its acquisitions of Instagram and WhatsApp.
  • The FTC alleges that Meta sought to extinguish Instagram and WhatsApp as threats to its dominance in the social media market.
  • Mark Zuckerberg testified before the court, defending his decision to acquire Instagram and WhatsApp, and denying that he bought them to squash competition.
  • The trial has revealed some surprising facts about Meta’s business practices, including a plan to block rival messaging app ads and a consideration of buying Snapchat for $6 billion.
  • Despite some setbacks, the FTC is confident in its case and has previewed evidence that it believes will show Meta’s alleged anticompetitive behavior.

Meta antitrust trial

The long-awaited antitrust trial between Meta and the Federal Trade Commission kicked off on April 14th. Over about two months, DC District Court Chief Judge James Boasberg is hearing arguments about whether then-Facebook illegally monopolized the market for ā€œpersonal social networking servicesā€ through its acquisitions of Instagram and WhatsApp.

The FTC first brought the case in late 2020. While it was initially thrown out by the judge, he let an amended version move forward after the government beefed up details about why it thinks Meta is a monopoly. This phase of the trial will help the judge determine if Meta is liable for breaking antitrust law. If he finds that to be true, he’ll later rule on how those harms should be remedied. The FTC is pushing for Instagram and WhatsApp should be spun off.

This is the third US trial seeking to break up Big Tech in recent years, following the Justice Department’s two separate cases against Google over its search and ad tech businesses.

Read below for all of our updates on the FTC v. Meta case.

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Q. What is Meta’s antitrust trial about?
A. Meta is facing an antitrust trial to avoid a breakup of its acquisitions of Instagram and WhatsApp.

Q. Why did Meta acquire Instagram and WhatsApp?
A. Meta acquired Instagram and WhatsApp to expand its social media presence and compete with other platforms.

Q. Did Mark Zuckerberg buy Instagram to squash it as a competitor?
A. No, according to Zuckerberg, he bought Instagram to make it better and improve its quality.

Q. What is the FTC’s main concern about Meta’s acquisitions of Instagram and WhatsApp?
A. The FTC alleges that Meta’s acquisitions of Instagram and WhatsApp have reduced competition in the social media market.

Q. Did Mark Zuckerberg consider buying Snapchat for $6 billion?
A. Yes, according to Zuckerberg, he considered buying Snapchat but was turned down.

Q. What is the significance of TikTok’s rise in relation to Meta’s revenue forecast?
A. The rise of TikTok has lowered Meta’s revenue forecast, indicating a decline in user engagement and advertising revenue.

Q. Did Mark Zuckerberg suggest wiping all Facebook friends lists to boost usage?
A. Yes, according to Zuckerberg, he once suggested this idea but it was not implemented.

Q. What is the FTC’s view on Meta’s ads strategy?
A. The FTC alleges that Meta’s ads strategy does not optimize for time spent on its platform, which can be misleading to users.

Q. Did Mark Zuckerberg offer to buy Snapchat for $6 billion?
A. Yes, according to Zuckerberg, he offered to buy Snapchat but was turned down.

Q. What is the significance of Settlers of Catan in relation to Meta’s antitrust trial?
A. The game Settlers of Catan made a cameo in Zuckerberg’s testimony, highlighting his sense of humor and ability to connect with users.