FTC Accuses Tech Giant of Monopolistic Practices; Zuckerberg Defends Strategy
Washington, D.C., April 16, 2025 — In a pivotal legal confrontation, Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, is embroiled in a high-stakes antitrust trial initiated by the U.S. Federal Trade Commission (FTC). The FTC alleges that Meta’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were strategic moves to eliminate competition and establish a monopoly in the personal social networking market.
FTC’s Allegations: A “Buy or Bury” Strategy
The FTC contends that Meta engaged in a “buy or bury” approach, systematically acquiring emerging competitors to stifle potential threats to its dominance. Central to the FTC’s case are internal communications, including a 2012 email from CEO Mark Zuckerberg suggesting that purchasing Instagram would “neutralize a potential competitor.”
The trial, presided over by U.S. District Judge James Boasberg, could result in Meta being compelled to divest Instagram and WhatsApp, effectively dismantling parts of its vast social media empire. Such an outcome would mark the most significant breakup of a U.S. company since the AT&T divestiture in the 1980s.
Zuckerberg’s Defense: Emphasizing Innovation and Competition
Testifying over multiple days, Mark Zuckerberg defended Meta’s acquisition strategy, asserting that the purchases were aimed at fostering innovation and enhancing user experience. He argued that the social media landscape is dynamic, with formidable competitors like TikTok, YouTube, and Snapchat posing continuous challenges.
Zuckerberg also highlighted that both Instagram and WhatsApp have flourished under Meta’s stewardship, benefiting from increased resources and integration into a broader ecosystem. He maintained that these acquisitions were approved by regulators at the time and have since contributed positively to consumer choice and technological advancement.
Implications for the Tech Industry
The outcome of this trial carries significant implications for the technology sector, particularly concerning how large tech companies grow and manage competition. A ruling against Meta could set a precedent for increased regulatory scrutiny over mergers and acquisitions, potentially reshaping strategies across Silicon Valley.
Legal experts note that the FTC’s challenge is formidable, as it must demonstrate that Meta’s past acquisitions have harmed competition and consumers. The case also raises questions about the retrospective examination of mergers previously approved by regulatory bodies.
Looking Ahead
As the trial progresses, testimonies from other key figures, including former COO Sheryl Sandberg and Instagram co-founder Kevin Systrom, are anticipated. The proceedings are expected to continue for several weeks, with the potential to redefine antitrust enforcement in the digital age.
The tech industry, investors, and consumers alike are closely monitoring the trial’s developments, understanding that its verdict could significantly influence the future landscape of social media and corporate consolidation.