The tech giant is facing an antitrust trial that could force it to sell Instagram and WhatsApp
The US competition watchdog is seeking to break up social media giant Meta over allegations it unfairly dominated the market by acquiring Instagram and WhatsApp, multiple media outlets have reported.
The reports come as a historic antitrust trial, brought by the US Federal Trade Commission (FTC), opened in a Washington federal court on Monday. The FTC has accused Meta of abusing its market power by buying up potential rivals in a “buy-or-bury strategy.”
Meta, which also owns Facebook, purchased the photo-sharing app in 2012 and the messaging service in 2014. Although the FTC initially approved both deals, it now argues that Meta overpaid when it acquired Instagram for $1 billion and WhatsApp for $19 billion in a defensive move to stifle competition.
If the judge rules in favor of the government, Meta could be forced to break itself up by selling Instagram and WhatsApp. Other tech giants may also come under increased scrutiny as pressure on Big Tech intensifies, industry analysts believe.
In opening statements, FTC attorney Daniel Matheson said Meta was generating enormous profits even as consumer satisfaction declined. The watchdog cited emails dating back to 2011 and 2012 where Meta’s (then Facebook’s) CEO Mark Zuckerberg suggested the company could buy Instagram, which he described as “growing quickly.”
Matheson called a 2012 message in which Zuckerberg discussed the importance of “neutralizing” Instagram “a smoking gun.”
Zuckerberg, who took the witness stand on Monday, said the emails reflected “relatively early” conversations about the acquisition. He argued that Meta had improved Instagram over the years.
On Tuesday, during his second day of testifying, Zuckerberg admitted the company bought Instagram because it had a “better” camera than the one Meta was trying to develop.
Meta’s lawyers rejected the FTC’s allegations, arguing the company faces stiff competition from platforms such as Chinese-owned TikTok.
The case is part of a broader crackdown on Big Tech that began during President Donald Trump’s first term. The original suit, filed in 2020, was dismissed six months later.
Since Trump’s return to the White House, Meta has made repeated overtures to his administration, including contributing to the president’s inauguration fund and easing its content moderation policies. In January, the company agreed to pay Trump $25 million to settle a lawsuit over the suspension of his accounts following the 2021 Capitol riot. Zuckerberg has also visited the White House in recent weeks.
The case could affect Meta’s 3.5 billion users, who rely on Facebook, Instagram or WhatsApp daily. However, with appeals likely from both sides, the lawsuit could drag on for years, experts say.
