The consequential antitrust trial that may compel Meta to dismantle Instagram and WhatsApp has officially concluded. Following six weeks of ascertaining evidence and 38 testimonials, including one from Mark Zuckerberg himself, the decision now rests with Judge James E. Boasberg to set a precedent, regardless of his ruling.
### The Largest Tech Antitrust Case Since *United States v. Microsoft Corp.*
The case, Federal Trade Commission v. Meta Platforms, charges the company with monopolizing social media by purchasing competitors instead of engaging in fair competition, a criticism surrounding the company that is far from novel. Although the acquisition of Instagram in 2012 and WhatsApp in 2014 received regulatory approval at that time, the FTC is now seeking to reverse those decisions.
The essence of the government’s case is based on a collection of internal emails and memos in which Meta officials voice concerns regarding escalating rivals and subsequently discuss the strategic advantages of acquiring them.
Meta’s rebuttal claims it encounters significant competition from platforms like TikTok, YouTube, and MeWe, as users access its services for entertainment, not solely for social connections. Conversely, the FTC aims to narrow the market definition to applications that primarily facilitate social interactions, such as Snapchat.
### Market is Paramount
As Nilay Patel from The Verge frequently emphasizes, the fate of antitrust cases such as this hinges on the definition of the market. Cases that were otherwise straightforward have stumbled due to inadequate market definition, making this potentially the crucial aspect of Judge Boasberg’s ruling, whichever side he takes.
Indeed, Judge Boasberg has already indicated that the case’s outcome depends on that definition. Should he align with the FTC’s interpretation, Meta might have to divest both Instagram and WhatsApp, a ruling that would represent the most substantial regulatory move against a tech firm since the Microsoft antitrust litigations of the late 1990s.
Judge Boasberg has guaranteed a ruling “swiftly,” so it is likely that it won’t be long before either Meta or the FTC rejoices, while the other prepares for an appeal.
