Meta Platforms, the parent company of Facebook, is set to square off with the federal government on Monday in a high-stakes antitrust trial that could force the tech giant to unwind one of its most lucrative acquisitions Instagram.
The trial, to be held in U.S. District Court in Washington, D.C., places Meta’s chief executive, Mark Zuckerberg, at the center of a legal battle that may reshape the future of the $1.3 trillion company. The Federal Trade Commission alleges that Meta used its market dominance to acquire rather than compete with emerging rivals, stifling innovation and harming consumers in the process.
If the government prevails, the court could order the divestiture of Instagram and WhatsApp, two apps central to Meta’s dominance in digital communication and advertising.
The trial will be presided over by Judge James E. Boasberg, chief judge of the Federal District Court for the District of Columbia, who previously dismissed an earlier version of the FTC’s case in 2021 but allowed a revised complaint to proceed.
The lawsuit positions Meta as the second Silicon Valley heavyweight to face off against antitrust regulators in as many years. Google’s parent company, Alphabet, was the first, having faced the Justice Department in a separate search monopolization case that concluded its liability phase last year.
In that matter, U.S. District Judge Amit Mehta ruled that Google had illegally maintained a monopoly over the general search market. Remedies in the Google case are expected later this year.
Some context
Meta’s case revives a decade-old debate over whether the government was too lenient in allowing Big Tech to consolidate power. Facebook’s $1 billion acquisition of Instagram in 2012 and its $19 billion purchase of WhatsApp in 2014 were both initially approved by federal regulators. But the FTC now argues that those deals were part of a broader pattern of anticompetitive behavior designed to neutralize emerging threats to Facebook’s dominance.
Internal company communications cited in the FTC’s complaint include a 2008 email in which Zuckerberg allegedly stated, “It is better to buy than compete.”
The agency contends that Instagram was acquired because Facebook lacked the innovation necessary to thrive in the transition to mobile internet. The complaint also highlights Facebook’s purchases of other potential competitors, including Glancee, Onavo, and Eyegroove, as further evidence of this strategy.
“These acquisitions were not random,” the FTC argues. “They were strategic moves to eliminate nascent threats before they could flourish.”
Meta has rejected the government’s claims, characterizing the FTC’s case as an ahistorical revisionism. A spokesperson said the trial will demonstrate that Facebook, Instagram, and WhatsApp are just three among many competing platforms in today’s digital landscape, including TikTok, YouTube, X (formerly Twitter), iMessage, and others.
“The FTC’s case ignores market realities,” the company said in a statement. “The idea that Facebook operates without competition is not just outdated, it’s wrong. And attempting to unwind transactions that regulators reviewed and cleared over a decade ago would set a dangerous precedent for American innovation.”
What to know
Meta further argues that the FTC’s focus on a narrow category of “personal social networking services” omits key competitors like LinkedIn and Snapchat, weakening the claim of monopolistic dominance.
If the court ultimately rules in the FTC’s favor, Meta’s bottom line could be significantly affected. According to reports, Instagram generated $32 billion in U.S. ad revenue in 2024, nearly half of Meta’s total revenue. The research firm projects that Instagram’s share of Meta’s ad revenue will surpass 50% this year.
WhatsApp, though smaller in monetary terms, is also seen as a strategic asset. Its business messaging segment brought in $1.7 billion in revenue in 2024.
Despite the potential financial ramifications, the trial is also being closely watched for its broader implications. Future cases are already in the pipeline. Federal prosecutors are preparing or pursuing antitrust actions against Apple, Amazon, Microsoft, and Google’s advertising business.
