In a significant legal victory for the tech giant, a U.S. district judge has ruled that Meta Platforms Inc. does not hold a monopoly in social networking, effectively dismissing a major antitrust challenge from the Federal Trade Commission (FTC) that could have forced the company to divest Instagram and WhatsApp.
A Landmark Ruling for Meta's Business
U.S. District Judge James Boasberg issued the decisive ruling on Tuesday, concluding a historic antitrust trial that wrapped up in late May. This outcome stands in contrast to recent rulings against Google, which was branded an illegal monopoly in search and online advertising.
In his ruling, Judge Boasberg stated that the FTC failed to prove that Meta currently holds monopoly power. "Whether or not Meta enjoyed monopoly power in the past, though, the agency must show that it continues to hold such power now. The Court’s verdict today determines that the FTC has not done so," he wrote.
The FTC's Case and Zuckerberg's Testimony
The FTC had argued that Meta maintained a monopoly by following CEO Mark Zuckerberg's 2008 strategy: "It is better to buy than compete." The agency contended that Facebook systematically tracked and acquired potential rivals it viewed as serious threats.
During his testimony in April, Zuckerberg pushed back against the FTC's claim that Facebook bought Instagram primarily to neutralize a competitive threat. When confronted with emails from more than a decade ago, Zuckerberg sought to downplay their contents, stating they represented early considerations and didn't capture his full interest in the company.
A Radically Changed Social Media Landscape
Judge Boasberg emphasized how dramatically the social media environment has evolved since the FTC initially filed its lawsuit in 2020. The rise of TikTok as Meta's "fiercest rival" was particularly notable, as the platform wasn't even mentioned in earlier dismissal opinions from 2021 and 2022.
Quoting Greek philosopher Heraclitus that "no man can ever step into the same river twice," Boasberg applied the same principle to social media. "The landscape that existed only five years ago when the Federal Trade Commission brought this antitrust suit has changed markedly," he wrote.
The judge noted that the traditional separation between social networking and social media markets has broken down, making the FTC's narrow market definition—which excluded competitors like TikTok, YouTube, and Apple's messaging service—increasingly irrelevant.
The Acquisitions That Shaped Meta
The case centered heavily on Meta's key acquisitions. Facebook purchased Instagram in 2012 for $1 billion in cash and stock, though the deal's value eventually fell to $750 million after Facebook's stock price declined following its IPO. At the time, Instagram was a photo-sharing app with no ads and a small cult following.
This marked the first time Facebook bought and maintained a company as a separate app, moving away from its previous pattern of "acqui-hires" where it would purchase startups primarily to hire their talent before shutting down the acquired company.
Two years later, Facebook acquired WhatsApp for $22 billion. These strategic purchases helped the company transition from desktop to mobile and maintain relevance with younger users as new competitors like Snapchat and TikTok emerged.
Meta did not immediately respond to requests for comment following the ruling, which represents a major validation of the company's growth strategy and current market position.
