A federal judge on Tuesday handed Meta a victory, ruling against the Federal Trade Commission (FTC) in an antitrust suit that claimed the social media giant stifled competition and bolstered a monopoly by buying upstart rivals.
The FTC sued Meta five years ago alleging anti-competitive behavior in what has amounted to the biggest legal challenge yet to one of the world's most influential social media companies. The case followed an investigation that began during the first Trump administration.
The FTC's suit contended that Facebook, which later became Meta, overpaid to acquire Instagram in 2012 and WhatsApp in 2014 as part of a "buy or bury" strategy to eliminate competitors and protect what it alleged is a monopoly in social networking.
The FTC argued that the only way to resolve Meta's alleged monopoly power was for the company to be broken up. In legal filings, government lawyers said a judge should order Meta to spin off Instagram and WhatsApp into separate companies, to give rivals more room to compete and users more choices.
In a memorandum opinion, U.S. District Judge James Boasberg wrote that the FTC had not demonstrated that Meta holds a monopoly in social media. Notably, he wrote that the world of what was once called "personal social networking" has changed — giving rise to new competitors and seeing YouTube become a more dominant force.
"Believing that the only constant in the world was change, the Greek philosopher Heraclitus posited that no man can ever step into the same river twice. In the online world of social media, the current runs fast, too," Boasberg wrote.
"The landscape that existed only five years ago when the Federal Trade Commission brought this antitrust suit has changed markedly. While it once might have made sense to partition apps into separate markets of social networking and social media, that wall has since broken down."
He noted that two court opinions on motions to dismiss "did not even mention the word 'TikTok'. Today, that app holds center stage as Meta's fiercest rival."
The FTC did not immediately respond to requests for a comment.
In an emailed statement to NPR, Meta welcomed the decision. "The Court's decision today recognizes that Meta faces fierce competition. Our products are beneficial for people and businesses and exemplify American innovation and economic growth. We look forward to continuing to partner with the Administration and to invest in America."
During the trial, which ended in May, Meta's lawyers argued that the company faces ample competition and that it bought Instagram and WhatsApp because they were good products. Its attorneys argued that federal authorities were attempting to punish the company for its success, noting that regulators approved both takeovers at the time.
In court, Meta CEO Mark Zuckerberg was peppered with questions about his motives for pursuing the acquisitions. Asked about Instagram, he told the court he was impressed with Instagram's product and decided it was better to buy the app than invest in building one in-house.
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