Meta Prevails in Historic FTC Antitrust Case, Will Keep WhatsApp and Instagram

SAN FRANCISCO — Meta Platforms Inc. has won a landmark legal battle against the Federal Trade Commission’s (FTC) antitrust lawsuit, which challenged its acquisitions of Instagram and WhatsApp. In a ruling issued Tuesday by U.S. District Judge James Boasberg, the court found that Meta does not hold a monopoly in social networking. This decision allows Meta to retain ownership of its popular platforms Instagram and WhatsApp, avoiding a forced breakup.

The FTC had argued that Meta maintained a monopoly by following CEO Mark Zuckerberg’s 2008 strategy of acquiring emerging competitors rather than competing against them directly. However, the court held that while Meta may have monopolistic power in the past, the FTC failed to prove that the company currently holds such power or is engaging in illegal anticompetitive conduct. The judge emphasized the changing landscape of social media, noting new major competitors like TikTok that have reshaped the market since the FTC filed its lawsuit in 2020.

Meta’s legal victory is seen as a recognition of its ability to compete vigorously in a dynamic social media ecosystem, marked especially by intense competition with TikTok. The ruling also underscores the court’s view that social networking and social media markets have blurred, making the FTC’s narrow market definitions inadequate.

Meta’s Chief Legal Officer Jennifer Newstead stated that this decision reflects the company’s strong competition and the benefits its products provide to people and businesses. Despite this win, Meta faces ongoing scrutiny over issues such as children’s mental health and its investments in artificial intelligence.

This ruling is a key moment in tech industry antitrust regulation, contrasting with recent decisions against other tech giants. While it marks a victory for Meta, the evolving landscape suggests continued regulatory and public oversight of social media platforms.