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Meta Antitrust Trial – What We Know About the Case So Far

by Thomas Babychan
April 19, 2025
in Business, News, Tech, Trending, World
Reading Time: 6 mins read
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https://en.wikipedia.org/wiki/Facebook–Cambridge_Analytica_data_scandal

https://en.wikipedia.org/wiki/Facebook–Cambridge_Analytica_data_scandal

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Meta CEO Mark Zuckerberg has taken the witness stand in a high-profile antitrust trial that could reshape how tech companies grow and operate in the United States. The case, brought by the Federal Trade Commission (FTC), questions whether Meta, formerly known as Facebook, used its power and financial strength to remove competition from the social media market. At the heart of the trial are two major acquisitions—Instagram in 2012 and WhatsApp in 2014. Both companies were rising players in their fields before being acquired by Meta.

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Now, more than a decade later, the FTC argues that those deals were not just business moves, but attempts to secure monopoly power by removing rivals. The trial, which began recently and is expected to run for several weeks, brings into question how tech giants should be allowed to compete and expand in a fast-changing digital world.

Mark Zuckerberg testified over several days as the first witness called by the FTC. His responses were closely watched by regulators, legal experts, and the broader tech industry. During his testimony, he tried to defend the company’s past acquisitions as necessary steps for innovation and staying relevant in a competitive space. He denied that buying Instagram or WhatsApp was about eliminating threats. Instead, he claimed the purchases were made because both companies had strong potential, which he and his team wanted to support and grow under Meta’s umbrella.

In court, Zuckerberg responded to questions from both the FTC’s attorney Daniel Matheson and Meta’s own legal representative Mark Hansen. Hansen asked him to explain internal communications that had been cited by the FTC as evidence of Meta’s intent to remove competitors. These included emails showing Zuckerberg’s concern about the fast growth of Instagram and the potential risks it posed to Facebook’s dominance at the time.

Hansen tried to show that such concerns were normal for any CEO keeping track of industry developments. Zuckerberg stated that his job required him to stay informed about what competitors were doing. He argued that it was not unusual for company leaders to push their teams based on what rivals were achieving.

During his time on the stand, Zuckerberg was also questioned about the rise of TikTok and YouTube. He acknowledged that platforms like YouTube, owned by Google’s parent company Alphabet, receive more user engagement than Facebook or Instagram. This admission was used to support Meta’s position that the social media market is highly competitive and that it does not hold monopoly power. The company pointed out that other apps, including TikTok and Snapchat, continue to attract young users and are a serious challenge to Meta’s reach and influence.

The FTC, however, presented a different view. The agency’s main argument is that Meta has built a system where it becomes harder for new players to enter or survive in the market. The FTC is not just questioning Meta’s past business choices, but also how those choices have affected the larger social media space. The trial focuses on the idea that Meta used its power to create barriers for others. This could involve buying up potential threats before they had a chance to grow independently or changing access rules on its platforms in ways that hurt smaller developers and startups.

Much of the attention has been placed on the early years when Instagram and WhatsApp were acquired. Instagram was a small but fast-growing photo-sharing app when Facebook acquired it for $1 billion in 2012. The app did not have any advertising at the time. Two years later, Facebook bought WhatsApp for $22 billion, a deal that shocked many because of its size.WhatsApp had become a popular messaging service with strong user engagement, especially in international markets. The FTC claims that these acquisitions allowed Meta to protect its power by preventing rivals from challenging it in the areas of messaging and photo sharing.

Zuckerberg denied that he made these deals out of fear. He said his focus was on the usefulness and value of the apps, not on eliminating threats. He also noted that after buying Instagram and WhatsApp, Meta continued to invest heavily in both platforms. This, he argued, shows the company’s commitment to growing these services and offering better products to users. He rejected suggestions that Meta held back Instagram’s progress or limited WhatsApp’s growth.

One email brought up during the trial showed Zuckerberg saying that if a company cannot win in the market, buying the competition may be a good idea. This line has become central to the FTC’s case, as it suggests that the acquisitions were not just strategic but aimed at control. Zuckerberg responded by saying that the line was part of a larger discussion and should not be seen as the basis for how decisions were made. He explained that he was exploring options and possibilities, not declaring a company policy.

The FTC is also trying to show that Meta made decisions that made it harder for other companies to succeed. According to their complaint, Meta used its strong position in the social networking space to block access, limit growth of competing services, and direct attention away from emerging platforms. While Meta’s lawyers argued that these steps were taken to improve user experience and security, the FTC maintains that the effect was to maintain control over a growing and shifting industry.

Another focus of the trial is how the social media market is defined. The FTC’s case rests on a specific definition that centers around personal social networking services—platforms used mainly for connecting with friends and family. Under this definition, services like Instagram, WhatsApp, Facebook, and a few others are in the same category. Meta, on the other hand, argues that the market is broader and includes many other apps that compete for people’s attention, such as TikTok, YouTube, and iMessage.

Zuckerberg said during his testimony that he sees the market as constantly shifting, with users moving between platforms depending on trends and new features. He pointed out that TikTok’s short video format has changed the way people use social media, and that Meta has had to respond by creating similar tools like Instagram Reels. He also mentioned that young users are spending more time on apps outside of Meta’s control, showing that competition is active and not limited to a few platforms.

The trial is being heard by U.S. District Judge James Boasberg, who previously allowed the case to move forward after rejecting Meta’s request for a summary judgment. His final ruling could have far-reaching effects. If he rules in favor of the FTC, Meta may be forced to separate from Instagram and WhatsApp, changing how tech companies handle mergers and future acquisitions. This could also set a precedent for other antitrust cases involving large technology firms.

Zuckerberg’s time on the stand gave a rare look into the inner workings of Meta. He talked about moments of doubt, strategic discussions, and major decisions that shaped the company’s future. At one point, he was asked if he had detailed memory of Instagram’s development over the years. He responded that he did not keep the full timeline in his head and that others in the company might have better information. This answer was seen by some as an effort to avoid giving a definite statement that could be used against him.

The trial has also seen other key figures testify, including Sheryl Sandberg, Meta’s former Chief Operating Officer. Her statements, along with others expected in the coming weeks, will help paint a fuller picture of how Meta operated during the period in question. The trial is part of a wider effort by U.S. regulators to hold Big Tech accountable. Similar antitrust cases have been brought against Google and Amazon, showing that this is not an isolated issue.

For Meta, the stakes are high. If the company is forced to spin off Instagram and WhatsApp, it could face major changes in how it handles advertising and user data. Instagram has become a central part of Meta’s strategy to stay relevant with younger users. WhatsApp remains a critical tool for communication in many parts of the world. Losing control of these apps could cut into Meta’s revenue and influence.

For the FTC, the trial is a test of its ability to challenge tech companies that have grown too powerful through mergers and acquisitions. The case was first filed in 2020 during Donald Trump’s presidency, and it continues under a government that is increasingly concerned about how tech firms impact society, competition, and the economy.

Tags: #meta_restructuringMeta Antitrust Case
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Thomas Babychan

Thomas Babychan is an experienced business and economic journalist with a focus on international trade, stock market, banking, and multilateral organizations. He also has expertise in international relations and diplomacy.

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