Meta's Antitrust Showdown: FTC vs. Social Media Giant
Meta Platforms is set to face trial over allegations by the FTC that it acquired Instagram and WhatsApp to stifle competition. The trial, scheduled for April, will assess if Meta maintained a monopoly by overpaying for these platforms. Antitrust challenges and market definitions will be pivotal in this case.
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Meta Platforms, owner of Facebook, will stand trial in April following allegations by the U.S. Federal Trade Commission (FTC) that it purchased Instagram and WhatsApp to suppress budding competition. The case will be heard in a Washington court, as decided on Monday by the presiding judge.
The FTC, which initiated the lawsuit in 2020 during the Trump administration, accuses Meta of illegal monopoly practices in the personal social networking space. It asserts that Meta overpaid for Instagram in 2012 and WhatsApp in 2014 as a strategy to neutralize potential threats rather than competing within the mobile ecosystem.
Judge James Boasberg has set April 14 as the trial date. He dismissed Meta's argument that the case relies on a narrow perspective of social media markets, neglecting competition from platforms like TikTok, YouTube, X, and LinkedIn. Despite these points, the judge acknowledged the difficulties posed by time and technological advancements in shaping the FTC's market claims.
(With inputs from agencies.)
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- Meta
- FTC
- trial
- antitrust
- competition
- monopoly
- social media
- Boasberg
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