Landmark antitrust trial could force Zuckerberg to sell Instagram

April 14, 2025

The Federal Trade Commission (FTC) has initiated a landmark antitrust trial against Meta, alleging the company unlawfully eliminated competition by purchasing Instagram for $1 billion in 2012 and WhatsApp for $19 billion in 2014. FTC lawyer Daniel Matheson argued Meta "decided that competition was too hard" and cited a 2012 memo from CEO Mark Zuckerberg discussing "neutralising" Instagram as a "smoking gun. " Meta's defense counters that the acquisitions were made to "improve and grow" the platforms, and that the company faces substantial competition from other apps like TikTok, X, YouTube, and iMessage.

Who is affected

Meta (Facebook) and its subsidiaries Instagram and WhatsApp
Social media users and consumers of Meta's platforms
Meta's competitors in the social media landscape
Meta CEO Mark Zuckerberg and former COO Sheryl Sandberg (who will testify)
Shareholders and investors in Meta

What action is being taken

The FTC is actively prosecuting an antitrust case against Meta in Washington
Meta is defending itself by arguing that acquisitions to improve and grow have never been found unlawful
Mark Zuckerberg and Sheryl Sandberg are preparing to testify at the trial
The trial is currently proceeding and could run for several weeks
The FTC is presenting evidence including Zuckerberg's internal communications about "neutralising" Instagram

Why it matters

A win by the FTC could force Meta to break up its company by spinning off Instagram and WhatsApp
The case represents a significant test of antitrust enforcement in the tech industry
The outcome could influence how large technology companies approach acquisitions in the future
The case raises questions about regulatory oversight, as the FTC initially approved these acquisitions over a decade ago
The trial is occurring amid political tension regarding the role and independence of regulatory agencies like the FTC

What's next

The trial will continue for several weeks
Mark Zuckerberg and former COO Sheryl Sandberg are expected to testify
The judge will ultimately determine whether Meta violated antitrust laws
If the FTC wins, remedies including potential divestiture of Instagram and WhatsApp would be considered

Read full article from source: BBC