The Federal Trade Commission (FTC) has initiated a landmark antitrust trial against Meta Platforms Inc., aiming to compel the company to divest its subsidiaries, Instagram and WhatsApp. The FTC alleges that Meta’s acquisitions of these platforms were strategic moves to eliminate competition and maintain a monopoly in the social networking market.
Internal communications from Meta CEO Mark Zuckerberg have surfaced, indicating a deliberate strategy to neutralize potential rivals through acquisitions.
During the trial, Instagram co-founder Kevin Systrom testified that Zuckerberg perceived Instagram as a threat to Facebook’s dominance. Systrom claimed that post-acquisition, Zuckerberg limited resources to Instagram, hindering its growth to prevent it from overshadowing Facebook.
Meta’s defense argues that the acquisitions were legal and approved by regulators at the time. The company contends that the social media landscape has evolved, with competitors like TikTok and YouTube challenging its market position, thereby negating monopoly claims.
The trial, presided over by Judge James Boasberg, is expected to continue for several months. A ruling in favor of the FTC could mandate Meta to separate from Instagram and WhatsApp, significantly impacting its business model and market valuation.
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