Agenda-setting intelligence, analysis and advice for the global fashion community.
Facebook parent company Meta defeated a US attempt to unwind its acquisitions of Instagram and WhatsApp on Tuesday when a federal judge ruled the company does not hold a social media monopoly.
The ruling gives Big Tech its first decisive win against the antitrust crackdown started in president Donald Trump’s first term, and is a major setback for the US Federal Trade Commission, which is pursuing a separate antitrust case against Amazon.com. The agency sought to force Meta to restructure or sell Instagram and WhatsApp to restore competition, saying the company spent billions of dollars on the acquisitions to eliminate nascent competitors.
Meta shares pared losses after the news, and were down just under 1 percent in afternoon trading.
“Our products are beneficial for people and businesses and exemplify American innovation and economic growth,” a Meta spokesperson said. “We look forward to continuing to partner with the Administration and to invest in America.”
ADVERTISEMENT
The FTC did not immediately respond to a request for comment.
The company had argued at trial that buying companies that excelled in new features instead of building competitor products was a valid business strategy, and that the FTC had ignored competitive pressure from ByteDance’s TikTok, Google’s YouTube and Apple’s messaging app, among others.
US district judge James Boasberg in Washington largely agreed with Meta that social media has shifted since the days when Facebook was used mostly for personal status updates shared with family and friends.
“The landscape that existed only five years ago when the Federal Trade Commission brought this antitrust suit has changed markedly,” Boasberg said.
Boasberg said the FTC had incorrectly excluded YouTube and TikTok from the market where it challenged Meta’s dominance. “Even if YouTube is out, including TikTok alone defeats the FTC’s case,” the judge said.
The case is part of a larger antitrust crackdown on Big Tech in the US, which also includes claims by the Department of Justice against Alphabet’s Google and a case against Apple.
By Jody Godoy, Mike Scarcella
Learn more:
ADVERTISEMENT
Meta Set to Face EU Finding It Failed to Police Illegal Posts
The European Commission is preparing to issue preliminary findings saying that Meta’s Facebook and Instagram lack an adequate ‘notice and action mechanism’ that would let users flag illegal posts for removal, Bloomberg reported.
