Meta Wins Landmark Case: Federal Judge Rules Instagram and WhatsApp Acquisitions Not Monopolistic
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In a significant victory for Big Tech, Meta Platforms has defeated a U.S. attempt to unwind its acquisitions of Instagram and WhatsApp. A federal judge ruled on Tuesday that the company does not hold a social media monopoly, dismissing the Federal Trade Commission's (FTC) claims. The ruling marks the first decisive win for Big Tech in the ongoing antitrust crackdown, initiated during President Donald Trump's first term. The FTC had sought to force Meta to restructure or sell Instagram and WhatsApp, alleging that the company spent billions of dollars on the acquisitions to eliminate nascent competitors. However, U.S. District Judge James Boasberg in Washington disagreed, stating that the social media landscape has shifted significantly since the days when Facebook was primarily used for personal status updates. The judge noted that the FTC had incorrectly excluded YouTube and TikTok from the market where it challenged Meta's dominance. Meta's spokesperson welcomed the ruling, saying, 'Our products are beneficial for people and businesses and exemplify American innovation and economic growth.' The company's shares pared losses after the news, closing at $600.37, down just 0.3% in afternoon trading. The FTC's decision not to block the deals when they were first made in 2012 and 2014 has been cited as a factor in the judge's ruling. The agency argued that Meta's main competitors were Snap's Snapchat and MeWe, a tiny privacy-focused social media app launched in 2016. Meta argued that the FTC had ignored competitive pressure from other platforms, including ByteDance's TikTok, Google's YouTube, and Apple's messaging app. The company defended its acquisitions, saying buying companies that excel in new features instead of building competitor products was a valid business strategy. The case is part of a larger antitrust crackdown on Big Tech in the U.S., which also includes claims by the Department of Justice against Alphabet's Google and a case against Apple.
