Mark Zuckerberg, CEO of Meta, is expected to testify in court as part of the antitrust case filed against the company in the United States.
In a high-profile antitrust case filed in the U.S., it is alleged that Meta Platforms, under the leadership of CEO Mark Zuckerberg, acquired Instagram and WhatsApp to block competition. The case is based on the accusation that Meta made billions of dollars worth of acquisitions to eliminate its social media competitors. The U.S. Federal Trade Commission (FTC) argues that Meta maintained its dominance in the social media market through these acquisitions, cutting off competition. The goal of the case is to compel Meta to divest platforms like Instagram and WhatsApp. This poses a significant threat to Meta, as about half of the company’s U.S. advertising revenue comes from Instagram. FTC lawyer Daniel Matheson stated that Meta created barriers to market entry with these acquisitions, leaving users with no reasonable alternatives. Meta, on the other hand, argues that users are mainly consuming short videos similar to TikTok today, indicating strong competition in the market. Emails suggesting that Zuckerberg proposed acquiring Instagram to “neutralize” it as a potential competitor are among the key documents in the case. Meta claims that these acquisitions benefit users and that they currently face strong competitors like TikTok, YouTube, and Apple’s messaging app. “META FORMS A MONOPOLY”
FTC asserts that Meta has formed a monopoly in “content sharing with family and friends” platforms. While pointing to smaller social media platforms like Snapchat and MeWe as competitors, they argue that broad audience platforms like TikTok and YouTube are not in the same category. The court process could extend until July. If FTC wins the case, in a second phase, they will need to present evidence on how selling Instagram or WhatsApp would restore competition. Particularly, the loss of Instagram could be devastating for Meta financially. According to research firm Emarketer, Instagram will account for more than half of Meta’s U.S. ad revenue by 2025.
While WhatsApp does not currently generate significant revenue, it holds the position of Meta’s largest application in terms of daily users. The company plans to generate revenue through features like chatbots and business messaging on WhatsApp. The case is part of broader antitrust movements initiated during the Trump era, targeting major technology companies. Amazon, Apple, and Google are also facing similar lawsuits.
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