Will Meta Really Have to Sell Instagram and WhatsApp?
Apr 15, 2025
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Paresh Dave, a Senior Writer at WIRED specializing in technology and business, joins to discuss the high-stakes trial between the FTC and Meta regarding the legality of its acquisitions of Instagram and WhatsApp. The conversation delves into the FTC's argument about Facebook's monopolistic practices and raises intriguing points about how the case could reshape the social media landscape. Insights into Mark Zuckerberg's testimony add a layer of drama, highlighting the courtroom battle's significance for competition and regulation in tech.
The FTC argues that Meta's acquisitions of Instagram and WhatsApp illegally suppressed competition, crucially affecting user privacy and experience.
Meta contends that their ownership has allowed Instagram and WhatsApp to thrive, highlighting the complexities of defining competition in the tech landscape.
Deep dives
FTC's Antitrust Allegations Against Meta
The Federal Trade Commission (FTC) alleges that Meta, the parent company of Facebook, illegally acquired Instagram and WhatsApp to suppress competition in the realm of personal social networking services. The FTC argues that Meta holds a monopoly in this specific market, which they define as platforms connecting family and friends, excluding competitors like TikTok and YouTube that focus on content consumption. They contended that these acquisitions harmed competition by eliminating up-and-coming rivals in the social networking space, resulting in reduced privacy, more targeted advertising, and a strained user experience. To support their case, the FTC pointed to internal communications from Facebook's early days, where Mark Zuckerberg expressed concerns about competition and a need for acquisitions to maintain dominance.
Meta's Defense and Competitive Landscape
Meta's defense counters that the FTC's market definition is too narrow and insists that Facebook does face significant competition, particularly from TikTok. They argue that during the brief periods when TikTok was unavailable, many of its users reverted to using Facebook, illustrating that the two platforms compete for the same audience. Meta also claims that Instagram and WhatsApp have flourished under their ownership due to the substantial financial support provided by Meta, which enabled them to scale and improve. The company is emphasizing that the intent behind the acquisitions was not to restrain competition but to enhance these platforms, which could not have reached their current level of success independently.
Potential Outcomes of the Trial
The outcome of the trial could significantly impact Meta's future, as a ruling in favor of the FTC may lead to a second trial to determine appropriate remedies, which could include forcing Meta to divest its holdings of Instagram and WhatsApp. If Meta wins, they retain ownership of these platforms, and it would likely signal to the FTC the challenges of revisiting acquisitions from years past. The decision will also set a precedent for future antitrust actions, as regulatory bodies strive to balance competition with innovation in a rapidly evolving tech landscape. Experts suggest that better pre-approval processes for acquisitions are needed to prevent long-term implications like those currently faced by Meta, highlighting the urgency for updated regulatory frameworks.
The trial between the US Federal Trade Commission and Meta began this week—and the future of the company is at stake. The FTC wants Meta to sell off two prized assets, Instagram and WhatsApp, arguing that it acquired them illegally to suppress competition. Today on the show, Senior Writer Paresh Dave joins host Zoë Schiffer to talk about what we know right now about the government’s case—and what we learned when Mark Zuckerberg took the stand Monday.
