FTC Aims to Break Meta’s Monopoly on Instagram & WhatsApp, While Lawyers Claim No Competition Has Been Stifled

In recent years, Facebook, now operating under the umbrella of Meta, has solidified its position as a leading force in social media through strategic acquisitions, notably of platforms like Instagram and WhatsApp. However, the Federal Trade Commission (FTC) has raised concerns, accusing the company of suppressing competition and has initiated legal action to address these claims. The battle ahead will not be straightforward, as Meta’s legal team is well-equipped, asserting that their essential applications remain free and accessible to millions of users.

Defense Highlights Growth and Quality Improvements of Meta’s Apps

During proceedings in a federal court, Meta’s CEO, Mark Zuckerberg, took the stand to defend his company’s practices. The FTC countered with compelling evidence, including an internal email from Zuckerberg dating back to 2012, where he expressed intentions to eliminate a potential competitor prior to acquiring Instagram. Furthermore, an email from 2014 revealed concerns about acquiring WhatsApp as a financial risk.

Daniel Matheson, the FTC’s attorney, argued that Meta’s strategy has been less about healthy competition and more about acquiring rivals to neutralize threats. He contended that this approach has resulted in consumers being left with lower-quality options while Meta prioritizes its profit margins.

In response, Meta’s attorney, Mark Hansen, cited reports from NPR, emphasizing that both Instagram and WhatsApp were acquired with the intention of enhancement. He further argued the case against the notion of monopoly, pointing out that Meta has never increased pricing for its users and that none of its major applications come with fees, similar to its competitors. Hansen suggested that if Meta were to impose charges, it would risk losing its user base and thereby decrease its revenue.

Hansen also highlighted that Meta’s continuous growth reflects consumer preference, stating, “That’s economics 101: the more valuable something is, the more people will use it.” Observations from BBC indicate that Laura Phillips-Sawyer, a business law associate professor at the University of Georgia, believes the FTC faces a challenging path in its case against Meta. Experts agree that the outcome may heavily hinge on how the presiding judge interprets the definition of a monopoly, despite the potentially incriminating emails presented by the FTC’s legal representatives.

For more detailed insights, visit The New York Times.

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