Meta Seeks Dismissal Of FTC's Antitrust Case, Cites Flawed Market Definition

Meta Seeks Dismissal Of FTC's Antitrust Case, Cites Flawed Market Definition

Meta Requests Federal Judge to Dismiss FTC's High-Profile Antitrust Case, Arguing Lack of Evidence

The tech giant Meta, behind Facebook, Instagram, and WhatsApp, has requested a federal judge to dismiss the Federal Trade Commission's (FTC) antitrust case against it. The case started in early April and may lead to the dissolution of Meta's social media empire. According to Meta, the FTC's complaint is predicated on a faulty description of the market and fails to take into account the strong competition it faces from more recent platforms like YouTube, TikTok, and X. The FTC has not met the legal requirements necessary to substantiate its claims of antitrust, according to Meta.

The FTC's antitrust lawsuit, filed in December 2020, centers on Meta's acquisitions of Instagram in 2012 and WhatsApp in 2014. The agency claims that Meta pursued a "buy or bury" strategy, acquiring these fast-growing competitors to neutralize potential threats to its dominant position in the social networking market. The FTC points to internal Meta communications, including a 2012 email from Meta CEO Mark Zuckerberg suggesting that buying Instagram would "neutralize a competitor." The FTC argues that these acquisitions reduced consumer choice and stifled innovation.

The 10-week non-jury trial is expected to conclude in June, followed by final briefs from both the FTC and Meta. If the FTC is able to convince the presiding Judge James Boasberg, a second trial will determine remedies, potentially including the forced divestiture of Instagram and WhatsApp. Meta's attempt to dismiss the case outright remains a long shot, as the judge may choose to let the case proceed to its scheduled conclusion before issuing a decision.

Instagram co-founder Kevin Systrom testified that he felt Zuckerberg viewed Instagram as a potential threat to Facebook's dominance after the acquisition, further fueling the FTC's argument that Meta's mergers were designed to stifle competition.