Meta beats FTC antitrust case that sought breakup of Instagram, WhatsApp | Latest Tech News
Mark Zuckerberg’s Meta dodged a compelled selloff of Instagram and WhatsApp after beating the Federal Trade Commission’s landmark antitrust case on Tuesday.
US District Judge James Boasberg, who presided over the bench trial in Washington, DC, federal court, said the FTC’s attorney had failed to show their argument that Meta held a monopoly over social media websites constructed on “friends-and-family” connections.
“The Court ultimately concludes that the agency has not carried its burden: Meta holds no monopoly in the relevant market,” Boasberg wrote. “Judgment must therefore be entered in its favor.”
Meta’s Mark Zuckerberg will keep away from a breakup of his empire. AFP via Getty Images
The ruling capped a five-year legal saga for Meta, which was accused of using a “buy or bury” strategy to purchase upstart companies before they might threaten its empire.
Facebook acquired Instagram for $1 billion in 2012 and WhatsApp for $18 billion in 2014.
During a seven-week trial earlier this 12 months, the FTC’s attorney argued that Meta held a distinct monopoly over what it called “personal social networking” apps.
The tech titan argued that it really faces intense competitors from the likes of Google-owned YouTube, TikTok and others in the social media realm.
Meta’s reps famous that the company obtained regulatory approval for its acquisitions at the time of the purchases and argued the FTC’s case was constructed on outdated info.
Boasberg appeared skeptical of the argument from the start of the trial, writing in his opinion that the FTC had confronted an “uphill battle” to win the case.
“With apps surging and receding, chasing one craze and moving on from others, and adding new features with each passing year, the FTC has understandably struggled to fix the boundaries of Meta’s product market,” Boasberg wrote.
Zuckerberg argued that the FTC misstated the market in which it operates. Meta Developers
“Whether or not Meta enjoyed monopoly power in the past, though, the agency must show that it continues to hold such power now,” he added. “The Court’s verdict today determines that the FTC has not done so.”
Meta, which called the FTC’s case “weak” in the ultimate days of the trial, praised the decide’s ruling.
“The Court’s decision today recognizes that Meta faces fierce competition,” a Meta spokesperson said in a assertion. “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 FTC said it could review its choices in mild of the ruling.
“We are deeply disappointed in this decision. The deck was always stacked against us with Judge Boasberg, who is currently facing articles of impeachment,” FTC spokesman Joe Simonson said in a assertion.
He was referring to a push by Republican members of Congress to oust the decide over his handling of ex-special counsel Jack Smith’s probe into President Donald Trump and the 2020 election.
Despite the win in court, Meta shares had been down about 1% in Tuesday trading as tech stock remained under strain due to fears about surging AI valuations.
Meta purchased Instagram for $1 billion in 2012. AP
The case offered a tantalizing glimpse behind the curtain about how Zuckerberg and his close allies thought through acquisitions as they scrambled to stop rival firms from eating into Facebook’s income.
In one bombshell electronic mail from 2012 that was highlighted by the FTC, Zuckerberg admitted shopping for Instagram would “neutralize a competitor.”
FTC attorneys surfaced inside research and communications that revealed executives panicking that Instagram was steering minors toward grownup intercourse creeps it called “groomers.”
Instagram co-founder Kevin Systrom testified that he felt Zuckerberg had seen the photo-sharing app as a “threat” to Facebook’s core business and withheld key assets needed to improve security.
Before the trial started in April, experiences surfaced that Zuckerberg had provided the FTC $450 million to settle the case — reportedly just a fraction of the quantity sought by FTC Chairman Andrew Ferguson.
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