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Will Mark Zuckerberg Sell Instagram and WhatsApp?
A major legal showdown has begun in the US that could shake up the entire tech industry. The Federal Trade Commission (FTC) has launched an antitrust lawsuit against Meta, demanding the company to sell off Instagram (acquired in 2012) and WhatsApp (bought in 2014).
According to FTC, Meta used these acquisitions as part of a long-term strategy to eliminate competition, not to enhance innovation. The goal, they claim, was to neutralize potential rivals through acquisition.
What’s in the case?
Court filings suggest that Meta’s goal was to suppress upcoming competitors by acquiring them, thus buying time and preventing disruption. FTC presented internal emails where Mark Zuckerberg said, “It’s better to buy than compete”, as key evidence.
How long will the case last?
The trial, led by Judge James Boasberg, is expected to last up to 37 days. One of the core questions: Did Meta create a monopoly in the US personal social networking market?
FTC claims that from 2012 to 2020, Facebook held 80% of user time in the personal social networking category. Platforms like TikTok and YouTube, focused on content rather than personal connections, are not seen as direct competitors.
Meta’s defense: “Real competition exists!”
Meta argues that FTC defined the market too narrowly and ignored real-world competition. Its legal team emphasizes that TikTok and YouTube are serious threats, and there's no proof of harm to consumers or advertisers. Furthermore, they argue that the success of the apps was due to Meta’s own investments.
What if the court rules against Meta?
If Meta loses the case:
- An independent trustee may be appointed to oversee the sale of Instagram and WhatsApp.
- Meta may be temporarily restricted from launching new competitor products.
- FTC’s proposed remedies also include data-sharing controls and tech usage limitations.
Even after the court ends, appeals could delay the final decision for years.
How did it all start?
FTC’s original lawsuit against Meta was initiated during the Trump administration. The current FTC Chair, Andrew Ferguson, was also appointed in that period. While some speculate about a possible settlement, no agreement has been reached so far.
FTC Commissioner Rohit Chopra, a Democrat, emphasized:
“We had strong reasons to proceed. This case shouldn’t end in a cheap deal.”