In a decisive victory for the tech giant, a US judge has ruled that Meta does not hold a monopoly in social networking, defeating a major antitrust challenge that threatened to break up its empire.
The FTC's 'Existential' Challenge Dismissed
The lawsuit, brought by the US Federal Trade Commission (FTC), represented an existential threat to Meta. The regulatory body had accused the company of operating a "buy or bury" strategy against emerging competitors and sought to force it to spin off two of its most crucial acquisitions: Instagram and WhatsApp.
Losing either platform would have had severe consequences. Instagram alone generates an estimated half of Meta's revenue, while WhatsApp is the world's most popular messaging app. The FTC's case hinged on Meta's 2014 acquisition of WhatsApp for $19 billion and its earlier purchase of Instagram.
Judge Cites TikTok and Criticises FTC's Case
US District Judge James Boasberg issued the ruling on Tuesday, following the conclusion of the historic antitrust trial in late May. In his verdict, he emphasised how much the competitive landscape has shifted since the FTC first filed the suit.
Judge Boasberg specifically pointed to the rise of TikTok as clear evidence of vigorous competition in the social networking market. He also chided the FTC for failing to account for platforms like YouTube as meaningful competitors, stating, "Even if YouTube is out, including TikTok alone defeats the FTC’s case."
A Setback for Broader Tech Regulation
This ruling marks a significant setback for US regulators who have been initiating a widespread crackdown on the power of big tech corporations. The outcome for Meta stands in stark contrast to recent rulings against Google, which was branded an illegal monopoly in search and online advertising.
The regulatory offensive continues on other fronts, however. The FTC has also sued Amazon for anticompetitive practices, and the US Justice Department has filed a suit against Apple, accusing it of maintaining an illegal smartphone monopoly.
In his concluding remarks, Judge Boasberg wrote that the FTC failed to prove that Meta holds monopoly power today, regardless of its past dominance. The ruling ensures that, for now, Meta's core structure remains intact.
