Instagram and WhatsApp Breakup Looms as Meta Battles in High-Stakes Trial
snds are taking harsher measures and have not been sparing any companies lately, especially the tech giants. They seem to punish any company that breaches the law. Google has been facing immense pressure for almost a year amidst claims of dominance, and the regulators are even considering a breakup. Now, Meta appears to be in hot water as the US Federal Trade Commission is pursuing an antitrust lawsuit against the company over its takeover of Instagram and WhatsApp. The trial is set to begin on April 14th, which could potentially completely alter the future of the company.
Meta Faces FTC Trial for Violating Antitrust Laws, Regulators Push for Breakup
Over the next two months, Meta will be engaging in a legal battle that could reshape the social media landscape and the company’s future. The trial is scheduled to commence on Monday, according to a Bloomberg report, but this lawsuit has been ongoing for some time. The FTC initially filed the case in 2020, alleging that Meta had illegal market dominance by creating a monopoly through its acquisition of Instagram and WhatsApp, which stifled competition.
Instagram was purchased in 2012, and in 2014, Meta acquired WhatsApp. The FTC claims that by taking these actions, Meta eliminated potential threats to its monopoly. It further argues that the quality of Meta’s app has deteriorated due to reduced competition, and privacy protections are weaker, with more ads now appearing. The US Federal Trade Commission is determined to ensure that the acquisitions comply with antitrust laws and promote healthy competition. It believes the takeovers should not have been approved in the first place, and now that harm has been done, separating Instagram and WhatsApp is the solution to address growing dominance.
Meta, in its defense, argues that acquiring Instagram and WhatsApp expanded the platform’s reach to a broader audience, helping it connect with billions globally. It also contends that it has faced fierce competition and does not slow down. Instead, the acquisitions have introduced more competitors. Since regulators approved the takeovers at the time, it will also be argued whether penalizing Meta now is fair. Meta further believes that the FTC’s definition of the market is too narrow, especially with rapidly evolving technologies and companies striving to adapt.
The trial will be held in Washington, D.C., and is expected to last approximately two months. Despite Meta lobbying the Trump administration and FTC Chair Andrew Ferguson, it had little effect on the legal proceedings as the case progresses. If the FTC succeeds, it could mean that Meta would have to divest Instagram and WhatsApp, potentially impacting the entire industry, given the increased scrutiny of tech companies.
