Meta is facing a landmark antitrust case from the Federal Trade Commission (FTC) over Instagram and WhatsApp acquisitions.

According to the BBC, the U.S. Competition and Consumer Watchdog accuses Meta of purchasing Instagram and WhatsApp to suppress competition. If the court sides with the FTC, Meta could be forced to sell both platforms. The outcome could change how tech giants do business for years. 

The case will begin today, before Judge James Burberg in Washington. Meta’s CEO, Mark Zuckerberg, and its former COO, Sheryl Sandberg, are expected to testify at the trial.

What the Federal Trade Commission is claiming

According to the FTC, Meta acquired these platforms strategically to kill off rising competition and tighten Meta’s grip on the social media market. It says Meta, which already owns Facebook, saw Instagram and WhatsApp as threats. So, rather than innovating or letting them grow independently, Meta bought both platforms in 2012 and 2014, respectively, to stifle rivals. 

The FTC first filed the complaint in 2020, during the Trump administration. It accused Meta of monopolizing the social media market and systematically buying out its competitors instead of competing with them.

“Our aim is to roll back Facebook's anticompetitive conduct and restore competition so that innovation and free competition can thrive,” said Ian Conner, who led the FTC’s Bureau of Competition when the lawsuit was filed.

The FTC’s current goal is to undo Meta’s “anticompetitive conduct” and restore balance to the social media space.

Meta says it played by the rules

Meta argued that the acquisitions were cleared at the time, and apps have benefited users. The company said federal regulators approved both purchases more than ten years ago. 

“The FTC’s lawsuit against Meta defies reality,” the company told the BBC. “More than 10 years after the FTC reviewed and cleared our acquisitions, the commission’s action in this case sends the message that no deal is ever truly final.”

The company is expected to argue in court that Instagram and WhatsApp are better off under Meta’s control. Meta says it sends the wrong signal to businesses and investors. According to sources close to the company, it will likely point to feature rollouts, improved user experience, and security investments as proof of how these platforms have flourished.

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