The Federal Trade Commission (FTC) is far from giving up its antitrust case against Facebook's parent company Meta. Despite being beaten in court last year, regulators have announced plans to appeal a ruling that found the government had not proven Meta was operating as a monopoly.
Meta acquired Instagram and WhatsApp several years ago, with the FTC arguing these moves depressed competition in the social media space and harmed consumers. In its appeal, the agency claims Meta's dominant position is sustained through 'non-competitive means', specifically buying off its competitors. The agency sees this as an issue for American businesses and the broader consumer base.
The case originally emerged under President Donald Trump in 2020. Since then, several high-profile executives have testified about the pressure to compete with TikTok, including Meta CEO Mark Zuckerberg and former COO Sheryl Sandberg. However, a US District Judge ultimately ruled against the government, stating that the rise of YouTube and TikTok prevented Meta from dominating the market.
If the FTC succeeds in its appeal, it could reopen the possibility of forcing Meta to reverse its acquisitions of Instagram and WhatsApp. The agency's determination suggests ongoing scrutiny for Meta's dominance and potential anti-competitive practices.
Meta has been actively courting politicians and investors over the past year, highlighting plans to invest billions of dollars into AI infrastructure. However, the news of the appeal could put these efforts at risk if the FTC were to secure its desired outcome.
Meta acquired Instagram and WhatsApp several years ago, with the FTC arguing these moves depressed competition in the social media space and harmed consumers. In its appeal, the agency claims Meta's dominant position is sustained through 'non-competitive means', specifically buying off its competitors. The agency sees this as an issue for American businesses and the broader consumer base.
The case originally emerged under President Donald Trump in 2020. Since then, several high-profile executives have testified about the pressure to compete with TikTok, including Meta CEO Mark Zuckerberg and former COO Sheryl Sandberg. However, a US District Judge ultimately ruled against the government, stating that the rise of YouTube and TikTok prevented Meta from dominating the market.
If the FTC succeeds in its appeal, it could reopen the possibility of forcing Meta to reverse its acquisitions of Instagram and WhatsApp. The agency's determination suggests ongoing scrutiny for Meta's dominance and potential anti-competitive practices.
Meta has been actively courting politicians and investors over the past year, highlighting plans to invest billions of dollars into AI infrastructure. However, the news of the appeal could put these efforts at risk if the FTC were to secure its desired outcome.