A federal judge today handed Meta a monumental victory, ruling against the Federal Trade Commission in an antitrust suit that tried to upend the $1.5 trillion Menlo Park-based company’s purchase of two of its rivals, Instagram and WhatsApp.
The FTC sued Meta in 2020 alleging anti-competitive behavior following an investigation that began during the first Trump administration.
The federal suit alleged that Facebook, which later became Meta, overpaid to acquire Instagram in 2012 and WhatsApp in 2014 as part of a strategy to eliminate social networking competitors. The case went to trial this year in April and ended in May.
Multiple media outlets reported that U.S. District Judge James Boasberg agreed with the company’s argument in an opinion released today, saying that TikTok and YouTube prevent Meta from monopolizing the social network market. The judge said Meta’s apps and the social media landscape have changed since the FTC filed its case, most recently because of AI-generated content, which undermined the agency’s arguments.
“Meta holds no monopoly in the relevant market,” he wrote.
Meta Platforms acquired Instagram in 2012 for $1 billion and WhatsApp in 2014 for $19 billion.
In legal filings, FTC lawyers said a judge should order Meta to spin off Instagram and WhatsApp into separate companies.
In a statement to the media, Meta welcomed the decision: "The court's decision today recognizes that Meta faces fierce competition. Our products are beneficial for people and businesses and exemplify American innovation and economic growth. We look forward to continuing to partner with the Administration and to invest in America."
“The court’s decision today recognizes that Meta faces fierce competition,” Meta Chief Legal Officer MetaJennifer Newstead said in a statement. “Our products are beneficial for people and businesses and exemplify American innovation and economic growth. We look forward to continuing to partner with the Administration and to invest in America.”
During the trial, it was reported that Meta's lawyers argued that the company faces ample competition and that it bought Instagram and WhatsApp because they were good products. Its attorneys argued that federal authorities were attempting to punish the company for its success, noting that regulators had approved both takeovers at the time..
In a brief media statement, an FTC spokesperson said, “We are deeply disappointed in this decision.”
The FTC suggested in its statement – continuing its sharp criticisms of Boasberg – that “the deck was always stacked against us with Judge Boasberg, who is currently facing articles of impeachment. We are reviewing all our options.”
Trump has attacked Boasberg as “a Radical Left Lunatic” and called for his impeachment, even though Boasberg has a nonpartisan record and a sterling reputation in legal circles.
Just this week, a group of Republican senators asked an appeals court to suspend Boasberg, who initiated potential contempt proceedings against Trump administration officials in April.
On Boasberg’s docket: a decision by Boasberg on whether Trump administration officials willfully violated a court order barring them from removing hundreds of people to a notorious prison in El Salvador using an 18th century wartime law.
Last month Trump fired the two Democrats on the FTC, despite a 1935 Supreme Court ruling that a president cannot do so without cause.
Another Silicon Valley giant, Google, recently lost two antitrust lawsuits related to its search and online advertising businesses.
Trump’s FTC brought the Mega suit to trial, despite renewed lobbying efforts by Meta CEO Mark Zuckerberg to curry favor with the President.
In January, Facebook and other Mega platforms responded in part to Trump’s long-held complaints about censorship. Zuckerberg stood with other tech CEOs at Trump’s inauguration.
