Mark Zuckerberg to sell Instagram, WhatsApp?

Meta Faces Historic Antitrust Trial as FTC Pushes to Break Up Tech Giant
A landmark antitrust trial against Meta, Facebook’s parent company, began today in Washington, D.C., as the U.S. Federal Trade Commission (FTC) seeks to compel the tech titan to divest Instagram and WhatsApp. The trial, spanning up to 37 days, signals regulators’ boldest effort yet to curb Big Tech’s dominance, with potential ramifications for mergers and competition across the industry.

FTC’s Core Allegations

The FTC alleges Meta’s acquisitions of Instagram ($1billionin2012\ast \ast )andWhatsApp(\ast \ast$22 billion in 2014) were deliberate maneuvers to quash rising rivals and illegally monopolize the U.S. “personal social networking” market. Regulators claim Meta’s leadership, including CEO Mark Zuckerberg, viewed takeovers as a way to “buy time” while struggling to innovate internally.

Key evidence includes a 2008 email from Zuckerberg stating, “It is better to buy than compete,” which the FTC argues reveals a strategy to stifle competition. The agency asserts that from 2012 to 2020, Facebook controlled over 80% of user time in its narrowly defined market, excluding platforms like TikTok and YouTube, which focus on creator-driven video content rather than friend-and-family interactions.

Meta’s Defense

Meta vehemently disputes the FTC’s claims, calling its market definition “far too limited.” The company argues that TikTok, YouTube, and others are direct competitors and insists the FTC has not proven harm to consumers or advertisers. In legal filings, Meta’s lawyers emphasized, “The FTC must prove consumers would have had better options sooner without these acquisitions,” adding that Instagram and WhatsApp thrived due to Meta’s investments, not anti-competitive tactics.

Judge’s Critical Role

U.S. District Judge James Boasberg will first decide whether Meta holds a monopoly in the FTC’s defined market—a pivotal step. If he sides with the FTC, a second trial in 2025 would determine remedies, potentially forcing Meta to:

• Sell Instagram and WhatsApp, an unprecedented tech breakup.
• Share data and technology with spun-off entities.
• Pause development of competing products during the transition.

Stakes for Meta and Tech

• Financial Threat: Instagram alone generates over 50% of Meta’s U.S. ad revenue. A forced sale could cripple its revenue stream.
• Industry Impact: The case may deter startups from pursuing acquisitions, a traditional growth and exit strategy, reshaping venture capital dynamics.
• Legal Precedent: A ruling against Meta could embolden global regulators to pursue similar actions against tech giants like Google and Amazon.

Political Context and Timeline

Originally filed in 2020 under the Trump administration, the lawsuit faced internal FTC opposition from Republican commissioners. Now, under FTC Chair Andrew Ferguson (appointed during Trump’s second term), speculation swirls about a potential settlement. However, Democratic Commissioner Rohit Chopra, a key backer of the case, urged the court to avoid a “cheap settlement” that fails to address alleged violations.

While a ruling may arrive within months, appeals could prolong the battle for years. The outcome will test the U.S. government’s ability to dismantle tech monopolies and redefine antitrust enforcement in the digital age.