From Yahoo Finance: 2025-04-12 10:00:00

Meta Platforms is gearing up for an antitrust battle with the US government that may lead to Mark Zuckerberg having to sell Instagram. If not settled, Meta will face off in court, following Google’s antitrust trial and ruling last year. Other big tech companies like Apple, Amazon, and Microsoft could also face antitrust cases.

The government’s case against Meta focuses on claims that Facebook used monopoly power to acquire smaller social media companies like Instagram and WhatsApp. The FTC alleges that Facebook bought these companies instead of competing with them, violating antitrust laws. Zuckerberg’s internal email allegedly stated it was better to buy than compete.

The FTC argues that Facebook’s acquisitions of Instagram, WhatsApp, and other competitors expanded its ability to surveil users and dominate the online advertising market. Meta denies being a monopolist and claims that regulators should support American innovation, not break up successful companies. The trial will determine the fate of Meta’s acquisitions.

Regulators are seeking to restore fair competition by potentially ordering the divestment of Instagram and spin-off of WhatsApp from Meta. This could significantly impact Meta’s revenue, as Instagram alone generated a large portion of its ad revenue. The outcome of the trial will have far-reaching implications for the tech industry and competition in the market. Meta’s business messaging service raked in $1.7 billion in 2024. Paul Swanson, head of Holland & Hart’s antitrust practice, noted that Judge Boasberg is receptive to the FTC’s arguments but also skeptical. The FTC faces challenges in convincing the judge that platforms like LinkedIn are not part of the same market.

Despite the FTC’s efforts, Judge Boasberg may not fully buy into their narrative about Meta’s monopoly power. The FTC alleges that Facebook has held over 70% of US personal social networking app daily active users since 2016. Swanson believes Meta’s market share may not be substantial enough to dictate pricing and output.

Legal reporter Alexis Keenan covers the ongoing court case for Yahoo Finance. Follow her on Twitter for updates. For more tech news impacting the stock market, click the link. Stay informed with the latest financial and business news from Yahoo Finance.

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