Facebook’s pro-meta platform is currently on trial in Washington, accused by US antitrust enforcement officials of unlawfully creating a social media monopoly by overspending when trying to secure the deal.
Over a decade ago, the acquisition was made with the intention of eliminating potential competitors that could challenge Facebook’s dominant position as a social media platform for connecting with friends and family, according to the Federal Trade Commission. The lawsuit was filed in 2020 during the first term of Donald Trump.
The FTC is seeking to compel Meta to restructure or divest parts of its business, including Instagram and WhatsApp. This trial marks the first significant test for the FTC under the second Trump administration, following an investigation initiated during Trump’s initial term.
Meta’s Chief Legal Officer, Jennifer Newsted, described the incident as a hindrance to technology investment in a blog post on Sunday.
Newsted writes, “It is absurd that the FTC is attempting to dismantle a prominent American company while the administration works to protect China-owned TikTok.”
This situation poses a serious threat to Meta’s existence. It provides a real indication of how aggressively the new Trump administration will pursue its promises to challenge major technology companies, especially considering that Instagram generates approximately half of US advertising revenue.
Losing Instagram would be a significant blow to Meta, according to Jasmine Enberg, a top analyst at market research firm Emarketer.
Enberg stated, “Losing Instagram would also greatly impact future user and revenue growth prospects. Instagram is currently Meta’s primary revenue generator, accounting for 50.5% of the company’s ad revenue in 2025. Instagram has filled the void left by Facebook in terms of user engagement, particularly among younger users.”
Meta has been actively engaging with Trump since his election. Meta CEO Mark Zuckerberg has made multiple visits to the White House recently. Zuckerberg also purchased a new $23 million home in DC to allow him to focus more on policy issues related to American technology leadership while Meta continues its work.
A company spokesperson said, “This allows Mark to spend more time as Meta continues to work on policy issues related to American technology leadership.” The company has contributed $1 million to Trump’s initial committee and has sought to persuade the president to settle the lawsuit against Meta.
FTC spokesman Joe Simonson commented, “The FTC under Trump Vance was not prepared for this trial.”
Zuckerberg will face questions about an email that suggested acquiring Instagram as a strategy to neutralize potential competitors and expressed concerns that WhatsApp, an encrypted messaging service, could evolve into a social network.
Meta argues that the purchases of Instagram and WhatsApp in 2014 benefited users, and Zuckerberg’s previous statements are no longer relevant in the face of fierce competition from TikTok, YouTube, and Apple’s messaging apps.
The central focus of this case is how users engage with social media platforms and whether they consider the services to be interchangeable. Meta points to increased traffic on Instagram and Facebook during TikTok’s brief hiatus in the US in January, as indicated in court records.
The FTC contends that Meta holds a monopoly on the platform used for social sharing. Snapchat and Mewe from Snap are major competitors in the US market.
Mike Prucks, Vice President of Research at Forrester, believes that the trial could have far-reaching implications for the social media industry.
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Proulx stated, “The outcome of this trial, combined with the uncertainty surrounding TikTok’s future, could reshape the core of the social media market. Meta is no longer the dominant force. We haven’t seen this level of disruption since 2006-2011 during the early days of social media. We may witness a resurgence of new social media startups attempting to establish a new order in the social media landscape.”
US District Judge James Boasberg ruled in November that the FTC had sufficient evidence to proceed, but the agency faces tough questions about the viability of its claims as the trial progresses.
Former FTC Chairman Lina Khan stated that Meta relied on “buy-and-bury techniques” when acquiring companies like Instagram and WhatsApp. If Meta could not outperform its competitors, it either acquired them or restricted access to Facebook’s network and features. The case revolves around the principles of “free and fair competition,” Khan explained in an interview with NBC.
Khan emphasized, “There is no expiration date on the illegality of these transactions. I believe the entire social networking ecosystem would look different today if Facebook had not been allowed to acquire these companies.”
The trial is set to continue in July. If the FTC prevails, it will need to demonstrate in a second attempt how measures such as divesting Instagram and WhatsApp can restore competition.
Losing Instagram, in particular, could have dire consequences for Meta’s revenue.
Although Meta has not disclosed app-specific revenue figures, Emarketer’s forecast in December suggests that Instagram is expected to generate $37.13 billion this year.
While WhatsApp currently contributes only a small portion to Meta’s overall revenue, it is the company’s primary app in terms of enhancing efforts to monetize tools such as daily users and chatbots. Zuckerberg believes that a “business messaging” service like this will drive the company’s future growth.
Source: www.theguardian.com
