Meta CEO Mark Zuckerberg appeared in court on Monday to testify in a landmark antitrust case that could shape the company’s future. The US Federal Trade Commission (FTC) has accused Meta of monopolising the social media market by acquiring popular social media applications such as Instagram and WhatsApp to crush the competition.
Daniel Matheson, the lead attorney for the FTC, started the trial by claiming that users have no other viable options due to the company’s control over social networking sites. The FTC claims that Meta purposefully acquired WhatsApp and Instagram in 2012 and 2014 in order to eliminate new competitors and maintain control over the personal networking market.
Zuckerberg defended the acquisitions, saying they were meant to improve user experience and foster innovation. Additionally, he said that users are increasingly interacting with content from areas of interest other than their immediate connections, which has led to the growth of the platforms.
The FTC claims that Meta’s massive scale has reduced consumer choice, while the company’s legal team claims that it faces strong competition in the global market from platforms such as TikTok, Snapchat, YouTube, and even Apple’s iMessage.
FTC also argued over the internal communications made during the acquisition. An email shows Zuckerberg stating Instagram’s acquisition as a strategy to neutralise the competitor. Another email stated that Meta’s Facebook Camera was lagging behind Instagram. Zuckerberg admitted those emails were genuine but were taken out of context and did not reflect the company’s broader long-term strategy, which involved massive investment in both platforms.
The legal team also pointed out that both acquisitions were approved by regulators at the time, and they questioned why the case was reopened years later. However, the FTC argued that Meta’s actions, such as slowing development to protect Facebook’s dominance, demonstrate anti-competitive behavior.
If the FTC wins the trial, Meta may be forced to sell Instagram and WhatsApp, which could harm the company’s core advertising business.