Janice R. Andrews
A federal judge has given the green light for an antitrust lawsuit against Meta to move forward, rejecting the company’s request for dismissal. The case, spearheaded by the Federal Trade Commission, centers on Meta’s past acquisitions of Instagram and WhatsApp.
The FTC’s lawsuit, dating back to 2020, seeks to unwind Meta’s purchases of these platforms, which occurred in 2012 and 2014. According to the agency and supporting state attorneys general, these acquisitions were strategic moves by Meta to eliminate potential rivals in social media.
Meta defended its position in April, highlighting that the FTC had initially approved both deals. The company emphasized its substantial investments in both platforms and pointed to a competitive landscape featuring various social media alternatives, including TikTok, YouTube, X, and iMessage.
While Judge James Boasberg permitted the main case to continue, he removed claims about Meta’s alleged discriminatory treatment of developers based on competition status. Meta remains optimistic about the trial’s outcome, emphasizing the consumer benefits of its acquisitions and expressing concern about the FTC’s attempt to revisit decade-old approved deals.
The case, which began during the Trump administration, will continue with a procedural meeting on November 25. Its resolution could significantly impact future technology sector acquisitions and merger oversight. This lawsuit represents a key element in the FTC’s broader initiative to regulate major technology companies’ consolidation practices.
