Next week, Meta Platforms Inc. will confront one of its most significant legal challenges to date as a federal antitrust trial begins, putting the company’s past acquisitions under scrutiny. The Federal Trade Commission (FTC) alleges that Meta—then known as Facebook—illegally stifled competition by purchasing Instagram in 2012 and WhatsApp in 2014, solidifying its monopoly over social media.
The outcome of the trial could have far-reaching consequences, potentially forcing Meta to spin off two of its most valuable assets—a move that would significantly weaken its advertising empire and reshape the digital landscape.
The FTC’s Case: "Better to Buy Than Compete"
The lawsuit, originally filed in 2020 during the Trump administration, accuses Meta of engaging in anti-competitive behavior by systematically acquiring emerging rivals rather than innovating. The FTC cites an internal 2008 email from CEO Mark Zuckerberg stating, “It is better to buy than compete.”
“Unable to maintain its monopoly by fairly competing, the company’s executives addressed the existential threat by buying up new innovators that were succeeding where Facebook failed,” the FTC argues in its complaint.
At the time of their acquisitions, Instagram was a fledgling photo-sharing app with a niche following, while WhatsApp was a fast-growing messaging platform. Facebook’s $1 billion purchase of Instagram—later adjusted to $750 million due to stock fluctuations—raised eyebrows, as did its $22 billion WhatsApp deal. The FTC contends these buys were strategic moves to eliminate future competitors.
Meta’s Defense: The Market Has Changed
Meta has pushed back forcefully, arguing that the FTC’s case “defies reality.” The company insists that today’s social media landscape is far more competitive than it was a decade ago, with TikTok, YouTube, X (formerly Twitter), and Apple’s iMessage now dominating key segments.
“The evidence at trial will show what every 17-year-old in the world knows: Instagram, Facebook, and WhatsApp compete with Chinese-owned TikTok, YouTube, X, iMessage, and many others,” Meta said in a statement.
Legal experts note that the FTC faces a tough challenge in proving Meta still holds monopoly power, given the rise of new platforms.
“The FTC must prove that Meta has monopoly power in its claimed relevant market *now*, not at some time in the past,” Meta emphasized in a recent filing.
Judge Skeptical but Open to Arguments
The case will be decided by U.S. District Judge James Boasberg, who last year denied Meta’s request for summary judgment, ensuring the trial moves forward. While Boasberg has expressed skepticism about the FTC’s narrow market definition, he has left the door open for further argument.
“He seems to be skeptical but has called it a ‘fact question,’ meaning he’s willing to hear the FTC’s experts define the market,” said antitrust attorney Paul Swanson of Holland & Hart.
High Stakes for Meta’s Future
If the FTC prevails, Meta could lose Instagram—now its top revenue driver in the U.S., accounting for over 50% of its ad sales in 2025. Analysts warn that a forced divestiture would deal a massive blow to Meta’s business.
“Instagram is Meta’s biggest moneymaker and has been compensating for Facebook’s declining appeal among younger users,” said eMarketer analyst Jasmine Enberg. “Losing it would disrupt Meta’s ad revenue and its ability to compete with TikTok.”
The trial also comes as Meta attempts to revitalize its aging Facebook platform to attract Gen Z users—a demographic that increasingly favors TikTok and Snapchat.
A Broader Battle Against Big Tech
Meta isn’t the only tech giant under antitrust scrutiny. Google is preparing for the remedy phase of its own monopoly case, set to begin April 21, while Amazon faces similar legal challenges.
“We’re applying 19th-century laws to 21st-century markets,” Swanson noted. “This case will test whether antitrust law can keep up with rapidly evolving tech industries.”
The trial’s outcome could set a precedent for how regulators approach tech mergers—and whether past acquisitions can be undone years later. For Meta, the stakes couldn’t be higher.