Cato Daily Podcast

Meta on Trial

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Apr 17, 2025
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INSIGHT

Government Seeks Merger Do-Over

  • Meta's trial is essentially about the government wanting a do-over on approved mergers from 10 years ago.
  • The government assumes a hypothetical market evolution that is difficult to predict, affecting consumer welfare judgments.
INSIGHT

Narrow Market Definition Risks Harm

  • The FTC narrowly defines the personal social networking market, excluding major competitors like TikTok.
  • This narrow focus risks extreme remedies that could harm consumers and future antitrust law.
INSIGHT

User Behavior Shows Market Dynamics

  • Trial hinges on defining the personal social networking market centered on close communication.
  • Evidence shows users jump between platforms like TikTok, YouTube, and Twitter, highlighting real competitive dynamics.
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