The Federal Trade Commission will get a chance to challenge Meta’s breakup claim in court. On Wednesday, US District Judge James Boasberg allowed the FTC’s lawsuit against the social media giant to move forward (PDF link). First, the FTC In 2020, he sued Meta an attempt to force the company, then known as Facebook, to give up Instagram and WhatsApp. Along with dozens of other attorneys general, the agency alleged that Meta bought the platforms in 2012 and 2014 to stifle growing competition in the social media market.
Last April, Meta asked Judge Boasberg terminate the case. While noting that the FTC had previously approved both acquisitions, Meta argued that the agency failed to show that the company had monopoly power in the market for social networking services and that it harmed consumers by buying Instagram and WhatsApp. In addition, the company claimed to have invested billions of dollars in both platforms, ultimately making them better for the benefit of social media users everywhere.
While not dismissing the lawsuit outright, Boasberg forced the FTC to narrow its case, rejecting the claim that Facebook provided preferential access to developers who agreed not to compete with it.
“We are confident that the evidence in court will show that the acquisition of Instagram and WhatsApp is good for competition and consumers. More than 10 years after the FTC reviewed and cleared these deals, and despite overwhelming evidence that our services compete with YouTube, TikTok, X, Apple’s iMessage and many others, the Commission continues to argue that no deal was ever truly final . , and businesses can be penalized for innovating,” a Meta spokesperson told Engadget. “We’ll review the feedback once it’s submitted.”
Judge Boasberg will meet with both sides on November 25 to schedule the trial. It’s worth noting that the FTC lawsuit was filed during the previous Trump administration, though whether and in what form it moves forward will depend on who President-elect Trump appoints to the agency.
