ZUCK IN HOT WATER: FTC Finally Drags Meta to Court Over Instagram & WhatsApp Monopoly!
What's the Big Deal?
- FTC takes Meta to court in a landmark antitrust trial starting April 14, 2025 ⚖️
- Zuckerberg testifies for over seven hours, defending Instagram and WhatsApp acquisitions
- Instagram and WhatsApp could be split from Meta if the FTC wins—a major setback
- Meta’s $1M donation to Trump’s inauguration didn’t stop the trial
Intro
Mark Zuckerberg’s Meta faces its biggest legal challenge yet in a high-stakes antitrust trial that began April 14, 2025. ftc-v-meta-antitrust-trial-begins-2025 The Federal Trade Commission (FTC) alleges Meta illegally acquired Instagram and WhatsApp to monopolize social media, potentially forcing their divestiture. Antitrust laws aim to prevent companies from unfairly dominating markets, and a win for the FTC could reshape how billions connect online. Despite Meta’s recent overtures to President Trump, including a $1M donation to his inauguration, the trial is moving forward full steam.
The Case Against Meta
The FTC first filed this lawsuit in December 2020, during Trump’s first term, alleging Meta (then Facebook) bought Instagram in 2012 for $1B and WhatsApp in 2014 for $19B to eliminate competition. The FTC argues these acquisitions were part of a “buy or bury” strategy to maintain a monopoly in personal social networking, harming consumers by limiting choices and reducing privacy protections.
As former FTC chair Lina Khan said in 2021 about Big Tech monopolies, “We have committed to a system of open markets and free enterprise.” lina-khan-2021-antitrust-reform The FTC claims Meta’s dominance stifled innovation, citing emails where Zuckerberg called Instagram a “threat” in 2012.
Meta’s Push to Settle
White House Talks: Zuckerberg reportedly met Trump to discuss settling the case, and Meta donated $1M to Trump’s inauguration fund. meta-trump-donation-inauguration-2025 Meta also paid Trump $25M to settle a lawsuit over his 2021 account suspension, signaling warmer ties. Yet, the trial proceeded.
FTC Stance: FTC chair Andrew Ferguson, appointed by Trump, said his lawyers are “raring to go,” though he’d follow “lawful orders” if Trump intervened. No settlement has been reached, and the trial could last weeks.
Meta’s Defense
Meta argues it faces fierce competition from TikTok, YouTube, and Snapchat, not just small apps like MeWe, as the FTC claims. They say Instagram and WhatsApp thrived because of Meta’s investments, not monopolistic tactics. In 2018, Zuckerberg emailed colleagues about possibly spinning off Instagram due to antitrust scrutiny, showing early awareness of risks.
Could Instagram Break Free?
If the FTC wins, Meta could be forced to divest Instagram and WhatsApp, creating separate companies. This would be complex, as their data systems and ad platforms are deeply integrated after over a decade. Instagram generates over half of Meta’s U.S. ad revenue, making a breakup a major blow.
Political Tensions
The trial has political undertones. Trump controversially fired Democratic FTC commissioners Rebecca Slaughter and Alvaro Bedoya, who are suing to keep their roles, arguing the firings undermine the FTC’s independence. ftc-commissioners-firing-lawsuit-2025 Meta’s Trump-friendly moves, like ending fact-checking and adding Trump allies to its board, haven’t swayed the case yet.
Big Tech Under Fire
Meta isn’t alone. In 2024, a judge ruled Google monopolized online search, and Amazon faces an FTC lawsuit. google-search-monopoly-ruling-2024 These cases signal a crackdown on Big Tech’s dominance, with regulators arguing monopolies harm innovation and consumer choice.
Final Thoughts
The FTC vs. Meta trial is a pivotal moment for tech regulation. A Meta breakup could lead to more competition, potentially improving privacy and reducing ads, but it might also disrupt services users love. As Zuckerberg, Sheryl Sandberg, and rivals like TikTok testify, the outcome could redefine how tech giants grow. For now, the courtroom drama is just heating up—stay tuned!