there is dismiss a antitrust case against the company before going to trial. In addition to 48 states and territories, an attempt to force the company to divest Instagram and WhatsApp, which it bought in 2012 and 2014.
The agency and dozens of attorneys general allege that Meta (then known as Facebook) bought the two platforms to stifle competition. Mark Zuckerberg, CEO of Meta, said that “Facebook’s acquisition and control of Instagram will not only eliminate the direct threat posed by Instagram, but also prevent another firm from using photo sharing on mobile phones to gain popularity as a private social network provider. admitted that it would be a significant hindrance. ” the FTC claimed. “Like Instagram, WhatsApp has posed a strong threat to Facebook’s private social network monopoly, which it aims to outcompete the competition.”
Meta notes that not only did the FTC initially approve both purchases, but its original complaint was dismissed for failing to state a reasonable claim. Although the judge allowed the amended complaint to move forward, Meta argues that “the agency did nothing to establish its case through the discovery process” to show that the company has monopoly power in the market for “personal social networking services.” harmed consumers and competition through acquisitions.
For the brief decision, the company focuses on Instagram, which accounts for about 30 percent of the company’s total revenue. , when it bought the service for $1 billion in 2012, it wasn’t making a profit. Instagram had just two percent of its billion-plus users today, Meta says, before it introduced direct messages, live streaming, Stories and other features. shopping. As for WhatsApp, Meta made the service free to use, added end-to-end encryption, and enabled voice and video calling.
Meta claims to have spent billions of dollars and millions of hours of work on applications. It argues that both Instagram and WhatsApp are ultimately in a better place for the benefit of consumers and businesses.
Elsewhere, Meta argues that the FTC has failed to establish a relevant antitrust market, arguing that the agency’s definition of the market for “personal social networking services” includes “only four companies—Facebook, Instagram, Snapchat, and MeWe—from an artificially limited set, ignoring many others. was used. is one of the most popular activities people engage in on Facebook and Instagram.” For example, Meta points out that YouTube and TikTok have a similar offering To the reels.
Moreover, the FTC’s claim that Meta has a “dominant share” in the artificial “personal social networking services market” is unfounded, according to the company. Meta says the FTC’s “market share numbers are meaningless without a properly defined market.”
Meta accused the FTC of using “structurally unconstitutional power” against the company. , also took the opportunity to take more potshots at agency and antitrust regulations. “The decision to renegotiate the pending deals is tantamount to announcing that no sale will be final,” said Jennifer Newstead, Meta’s Chief Legal Officer. . Newstead argues that Instagram and WhatsApp “will cast doubt and uncertainty on the US government’s merger review process and whether acquiring companies can actually rely on the results of the regulatory review process, and will make companies think twice about investing in innovation because if this innovation leads to success, they can be punished.”
