The Federal Trade Commission (FTC) is appealing a prior court decision that dismissed its antitrust lawsuit against Meta (formerly Facebook), reigniting a legal battle over the company’s acquisitions of Instagram and WhatsApp. The appeal, filed Tuesday, challenges the November ruling by Judge James E. Boasberg, who found Meta did not violate antitrust laws when it purchased the two social platforms over a decade ago.
The Government’s Case
The FTC alleges that Meta intentionally eliminated emerging competition by acquiring Instagram in 2012 for $1 billion and WhatsApp in 2014 for $19 billion. According to the agency, these purchases were strategic moves to stifle rival platforms before they could challenge Meta’s dominance in social networking. The FTC argues these acquisitions violated antitrust regulations designed to protect market competition.
Meta’s Defense and the Court’s Initial Ruling
Meta maintains its actions were legitimate business decisions in a highly competitive landscape. The company asserts it faces strong rivals, including TikTok and YouTube, which Judge Boasberg cited in his original ruling as evidence undermining the government’s claim of a Meta monopoly. The judge concluded that the growth of these alternative platforms weakened the argument that Meta’s acquisitions eliminated credible threats.
Broader Implications for Big Tech
This case is part of a wider effort by regulators to curb the power of major technology companies. Over the past two years, the government has secured antitrust victories against Google, with courts agreeing the company holds monopolies in online search and advertising tech. Separate lawsuits are also ongoing against Amazon and Apple over similar concerns. The FTC’s appeal against Meta signals a continued commitment to scrutinizing acquisitions by Big Tech firms and ensuring fair market practices.
The six-week trial included testimony from Meta CEO Mark Zuckerberg and Instagram co-founder Kevin Systrom, underscoring the high stakes involved in this legal dispute. The FTC hopes the appellate court will reverse the initial decision and set a precedent for stricter antitrust enforcement in the tech industry.
The outcome of this appeal could significantly reshape how regulators approach mergers and acquisitions in the digital age, setting a new benchmark for assessing anti-competitive behavior by dominant tech firms.
