From Yahoo Finance: 2025-04-08 13:29:00

Meta CEO Mark Zuckerberg is racing against time to convince President Trump to stop an antitrust trial aiming to break up his $1.3 trillion empire. The trial, initiated during Trump’s first term, accuses Meta of violating antitrust laws by acquiring Instagram and WhatsApp instead of competing with them.

The trial seeks to force Meta to spin off Instagram and WhatsApp, with Instagram representing nearly half of Meta’s revenue in 2024. Zuckerberg has made multiple visits to the White House to settle the case before the trial starts, but the outcome remains uncertain.

FTC chairman Andrew Ferguson has stated he will follow the president’s orders on how to proceed with the case against Meta. The trial is set to start on April 14, with the FTC presenting a strong case against the tech giant.

Antitrust law professor Eleanor Fox believes Zuckerberg’s lobbying efforts to settle the case are driven by Meta’s strong incentives to avoid trial. A decision to proceed with the trial could hinder Zuckerberg’s attempts to gain favor with the new administration.

The heart of the case lies in allegations that Meta’s acquisitions of Instagram and WhatsApp were part of an illegal scheme to stifle competition. The FTC claims Facebook systematically tracked potential rivals and acquired companies to eliminate threats.

Facebook’s controversial acquisition of Onavo in 2013 could pose a challenge for its defense in the trial. Onavo offered internet browsing privacy but also collected user data, leading to concerns about Facebook’s competitive practices.

Overall, the high-stakes antitrust trial between Meta and the FTC is set to commence soon, with Zuckerberg racing against time to settle the case with President Trump. The outcome of the trial could have significant implications for Meta’s future and the tech industry as a whole. The FTC’s lawsuit against Facebook alleged illegal monopolization in the social networking market. Judge Boasberg initially dismissed the case for lack of evidence, but later accepted an amended complaint. The FTC must prove Meta’s market dominance and anticompetitive behavior with Instagram and WhatsApp. WhatsApp’s business messaging generated $1.7 billion in 2024 with over 530 million daily active users.

Judge Boasberg emphasized that the case isn’t a sure win for the FTC. If liability is established, Meta may not automatically have to divest Instagram and WhatsApp. The remedy phase of the trial will consider balancing hardships between Meta and its users. The main issue will be deciding on an appropriate remedy if the FTC’s claims hold.

Read more: Meta’s Zuckerberg running out of time to talk Trump into ending antitrust trial