The US Federal Trade Commission (FTC) has filed an antitrust lawsuit against Meta Platforms. The allegations are that the company's acquisitions, including Instagram, were strategically made to eliminate competition and solidify its dominance in personal social networking.
According to the FTC, these acquisitions were part of a broader effort to stifle emerging competitors and maintain Meta's market stronghold. This lawsuit raises critical questions about the company's business practices and their impact on the tech industry.
Internal emails from Mark Zuckerberg, CEO of Meta, have become an important part of the FTC's case. In a 2012 email, Zuckerberg referred to Instagram as a "threat" and stated that an acquisition would assist in quelling competition. These communications are being sought to prove that Meta's acquisitions were not aimed at competition but rather at stifling it.
Should the FTC win the case, Meta may be forced to divest itself of Instagram and WhatsApp. Such a ruling would greatly disrupt Meta's business model, with Instagram alone expected to account for over half of the company's U.S. advertising revenue by 2025. A breakup could create a more competitive social media marketplace, benefiting consumers and smaller companies.
The antitrust trial opened in April 2025, with major testimonies from Meta executives Mark Zuckerberg and former COO Sheryl Sandberg being the most notable. The central question in the court's inquiry is whether Meta's acquisitions harm competition by demonstrating antitrust violations in the company's market conduct. This trial is expected to take several weeks, with a decision still several months away.
This incident creates an essential test for antitrust enforcement in technology. If the ruling favors the FTC, it would set a precedent for scrutinizing acquisitions and may certainly lead to more regulatory oversight of Big Tech companies. Conversely, if Meta wins its case, current regulatory standards will remain in place, meaning that tech giants can maintain their acquisitions.
This landmark trial marks a pivotal moment in antitrust law, with far-reaching implications for Big Tech. The outcome could reshape the digital marketplace's competitive landscape and redefine merger and acquisition regulations. While the industry closely watches, the stakes are high, and the trial's impact on key players could be profound.