Meta CEO Mark Zuckerberg took the stand on Monday in a landmark antitrust trial that could reshape the future of the tech giant and the legal approach to major technology mergers in the United States.
The trial, brought by the US Federal Trade Commission (FTC), accuses Meta of illegally monopolising the social media market through its acquisitions of Instagram and WhatsApp — moves allegedly aimed at eliminating potential competition.
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The FTC argues that Meta’s actions have left users with “no reasonable alternatives” in what it defines as the “personal social networking” market — digital platforms intended primarily to connect individuals with friends and family.
The agency’s top litigator, Daniel Matheson, opened the trial by asserting that Meta strategically acquired rising competitors to avoid direct competition and maintain its dominance.
Zuckerberg, who was the first witness to testify, rejected these claims, describing the acquisitions as “strategic investments” to promote innovation and enhance the user experience. He acknowledged that Meta’s platforms had shifted somewhat from their original focus, saying, “It is the case that, over time, the ‘interest’ part of that has gotten built out more than the friend part.” Still, he insisted that fostering personal connections remained central to Meta’s mission.
The FTC’s case hinges significantly on a series of internal emails, including a 2012 exchange in which Zuckerberg discussed the potential of acquiring Instagram as a way to “neutralise a competitor.” Another email revealed his concern that Facebook Camera — Meta’s own photo-sharing app — was lagging behind Instagram.
While Zuckerberg conceded these emails reflected genuine internal discussions, he maintained they were taken out of context and did not represent Meta’s long-term strategy, which involved major investments in both Instagram and WhatsApp after their acquisitions.
Meta’s legal team is expected to counter the FTC’s narrative by disputing its narrow definition of the market. Company lawyers argue that Meta faces stiff competition from a range of platforms, including TikTok, Snapchat, YouTube, and Apple’s iMessage.
They also emphasised that US regulators had approved both the Instagram (2012) and WhatsApp (2014) acquisitions at the time, questioning the legitimacy of revisiting those decisions more than a decade later. “The FTC’s case rests almost entirely on decade-old emails,” a Meta spokesperson said.
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However, the FTC contends that Meta’s post-acquisition behaviour further substantiates its case. Matheson alleged that after acquiring Instagram, Meta intentionally slowed its development to prevent it from overtaking Facebook — a tactic he described as “a rational business decision” but one that “offends the policy” of antitrust law.
Zuckerberg is expected to return to the stand on Tuesday, with further questioning likely to focus on Meta’s internal decision-making processes and the broader competitive landscape. Former COO Sheryl Sandberg and Instagram co-founder Kevin Systrom are also slated to testify in the coming weeks.
If the FTC prevails, the outcome could be dramatic: Meta may be forced to divest Instagram and WhatsApp, unravelling years of integration and dealing a serious blow to its advertising-driven revenue model. Instagram alone is projected to contribute over half of Meta’s US ad revenue in 2025.
The trial is set to continue over the next eight weeks, with the potential to set a precedent in how tech consolidation is treated under antitrust laws going forward.
Source: With inputs from BBC, India Today