Meta has concluded its defense on May 21 in a significant federal antitrust trial where U.S. authorities accused the companzof unlawfully stifling competition via its Instagram and WhatsApp acquisitions.
Meta countered that its actions benefited both apps and consumers. It argued for a dynamic, broad competitive landscape including YouTube and TikTok. This contrasts the FTC’s narrower focus on Snapchat.
This trial phase concluded after a key ruling on May 20, 2025. Judge James E. Boasberg denied Meta’s motion for an early dismissal. He found insufficient grounds to end the Federal Trade Commission’s (FTC) case prematurely.
The trial now nears a resolution. This outcome could reshape Meta and set a major tech antitrust precedent. It may also alter how millions use these popular social media services.
Meta’s Defense: Innovation, Competition, and User Benefits
Meta’s counter-argument centers on its crucial role in developing Instagram and WhatsApp. The company claims its resources and expertise transformed them into global powerhouses.
WhatsApp co-founder Brian Acton testified for the defense. Despite a notable 2017 departure over ad monetization disagreements, Acton stated WhatsApp benefited from Meta’s acquisition.
He conveyed belief in Mark Zuckerberg’s alignment with WhatsApp’s user focus. Nick Shortway, a Meta engineering director, testified Instagram’s development also accelerated.
In another testimony, Professor Dennis Carlton from The University of Chicago Booth School of Business, explained how Instagram gained significantly from Facebook’s monetization capabilities.
Meta vigorously contested the FTC’s market definition. It presented evidence from economics professor John List from the University of Chicago. His experiment suggested users readily shift to platforms like Google Chrome and YouTube.
This directly challenges the FTC’s narrower view of Meta’s competitive sphere. Meta’s legal team consistently argued for robust, broad competition. This point was detailed in its unsuccessful motion for judgment.
Legal expert Professor Anita Sharma from Stanford Law commented to Associated Press on Meta’s defense strategy. She observed that while highlighting post-acquisition improvements is a common tactic for companies, the fundamental legal hurdle remains. “The challenge for Meta is to convince the court that the benefits weren’t just incidental to a larger strategy of market monopolization,” she stated.
FTC’s Monopoly Claims and Trial Complexities
The FTC’s 2020 lawsuit alleges Meta’s acquisitions were strategic. It claims Instagram (2012) and WhatsApp (2014) buys unlawfully cemented a “personal social networking” monopoly. This was alledgedly done by eliminating nascent competitors.
The agency seeks divestiture of both platforms. Such a remedy would dramatically alter the social media landscape.
The FTC urged the court to consider an independent Instagram and WhatsApp. This scenario, they argue, would have fostered more competition.
Brian Acton’s supportive testimony for Meta carries a complex history. His past public criticisms, including a notable “#deletefacebook” tweet, create a complex backdrop for his testimony. Reuters analysis touches on this vulnerability.
Legal analyst Mark Stevens explained to Reuters, “Acton walking a tightrope was evident; his past statements offer the FTC ammunition to suggest his current narrative is shaped by Meta’s defense needs.” This added another layer to the trial. Earlier, Instagram co-founder Kevin Systrom delivered a mostly blistering testimony against Meta.
Mark Zuckerberg testified Facebook evolved into a “broad discovery-entertainment space,” thereby competing with a larger set of platforms.
Before the trial, settlement talks between Meta and the FTC collapsed, according to reports, because of a large gap in financial expectations.
Meta’s defense has now rested. The FTC is expected to begin closing arguments on Tuesday, May 27, 2025.
Judge Boasberg reportedly allocated three days for these final summations. The tech world and consumers await a verdict with far-reaching implications.
During the trial, Meta spokesman Chris Sgro asserted the proceedings showed the tech industry’s “dynamic, hypercompetitive nature.”
