The Federal Trade Commission on Monday accused Meta of creating a monopoly that robbed the competition by buying startups that were on the road, and by launching a groundbreaking antitrust trial that could dismantle a social media empire that changed the way the world connects online.
In a packed courtroom in the District of Columbia, the FTC launched its first anti-trust trial under the Trump administration by claiming that Meta illegally solidified its social networking monopoly when Instagram and WhatsApp were small startups. These actions were part of a “buyer or boring strategy,” the FTC said.
Ultimately, the purchase combined the power of meta, robbing consumers of other social networking options and pulling away the competition, the government said.
“For over 100 years, American public policy has argued that businesses must compete if they want to succeed,” Daniel Matheson, the lead FTC litigant in the case, said in his opening remarks. “The reason we’re here is because Meta broke the deal.”
“They decided that it was too difficult to compete and it would be easier to buy a rival than to compete with them,” he added.
The Trials – Federal Trade Commission vs. Metaplatform – poses the most consequential threat to the business empire of the company’s co-founder Mark Zuckerberg. If the government is successful, the FTC could ask Meta to sell Instagram and WhatsApp, shift the way Silicon Valley does business and change the long pattern of big tech companies that snapped their younger rivals.
Still, legal experts warned that the FTC might be difficult to win. That’s because we have to prove something that the government doesn’t know. This is because Meta, previously known as Facebook, would not achieve the same success without the acquisition. Also, legal experts said it is very rare to unlock a merger that was approved several years ago.
“One of the hardest things antitrust laws are when industry leaders buy small potential competitors,” said Gene Kimmelman, a former senior official at the Obama Administration Department. Meta said, “I bought a lot of things that weren’t pan-out or integration-integrated. How is Instagram and WhatsApp different?
This effort continues a long-standing bipartisan pursuit to reduce the vast power that a small number of high-tech companies have beyond commercial, exchange of ideas, entertainment and political discourse. Despite attempts by tech executives to President Trump, his antitrust appointees have shown they will continue on the course.
The FTC’s case against Meta is the third major technological antitrust lawsuit to be tried in the last two years. Last year, DOJ won antitrust laws against Google because it monopolized internet search. The federal judge will hear debate over the relief package, including a potential dissolution next week. DOJ also completed another exam against Google to monopolize AD technology, which is still decided by a federal judge.
Source: www.nytimes.com