The historic antitrust trial against social media conglomerate Meta will commence in Washington on Monday.
The U.S. regulatory body for competition and consumers claims that Meta, having already acquired Facebook, purchased Instagram in 2012 and WhatsApp in 2014 with the intent of stifling competitors, thereby granting itself monopolistic control.
The FTC reviewed and approved those acquisitions but committed to monitor the outcomes. If the Federal Trade Commission (FTC) wins the case it could force Meta CEO Mark Zuckerberg to sell off both Instagram and WhatsApp.
Initially, Meta expressed confidence about emerging victorious, and industry specialists have informed GAPTEKZONE that it might contend that Instagram users enjoyed an improved experience following the acquisition.
“The FTC argues that acquiring Instagram was a means of mitigating the growing competitive threat posed to Facebook,” explains Rebecca Haw Allensworth, an antitrust law professor at Vanderbilt Law School.
Ms Allensworth suggests that Mr Zuckerberg’s direct statements, particularly those from his correspondence, might provide the strongest proof during the proceedings.
Ms Allensworth states, “He believes it’s preferable to purchase rather than contest. There isn’t much room for misinterpretation there.”
On the contrary, Meta may contend that the intention behind actions holds little significance in the context of an antitrust lawsuit.
She stated that the main issue they will address is whether consumers have actually benefitted from the merger. They plan to present substantial proof showing that Instagram reached its current success due to its ownership by Facebook.
Both Mr. Zuckerberg and the ex-chief operating officer of the firm, Ms. Sheryl Sandberg, are anticipated to appear as witnesses during the trial. The proceedings might last for multiple weeks.
Shifting politics
The case, FTC v Meta, was filed during US President Donald Trump’s first administration but risks becoming politicized during his second term.
Mr. Zuckerberg has personally urged President Trump to get the FTC to dismiss the case.
as reported by The Wall Street Journal
.
When approached by GAPTEKZONE for confirmation regarding the report, Meta avoided directly addressing the issue but stated: “The FTC’s legal actions against Meta contradict reality.”
“Over ten years since the FTC examined and approved our mergers, the commission’s move in this instance conveys that no transaction is ever really concluded,” a Meta representative stated to GAPTEKZONE.
The relationship between Mr. Zuckerberg and Trump had been
frosty
in part due to Trump being restricted from using Meta’s social media platforms following the US Capitol riot in January 2021.
Since then, the relationship has improved slightly.
Meta
contributed
$1 million (£764,400) to Donald Trump’s inaugural committee, and in January
announced
The UFC President, Dana White—a close associate of Donald Trump—would become part of its board of directors.
The company also
announced
In January, it announced the elimination of independent fact-checkers.
‘A very clear message’
President Trump’s action of dismissing two FTC commissioners in March adds another layer to the complexities of this case.
As Democrats, Rebecca Kelly Slaughter and Alvaro Bedoya found themselves in the minority on the five-member commission.
As of Wednesday, only two out of those seats had been filled, both by Republicans. Another seat was also set to be occupied by a Republican.
confirmed
by the Senate on Thursday.
Slaughter and Bedoya — who are filing lawsuits against the Trump administration seeking reinstatement — argue that their removal was intended to serve as a deterrent.
“The president issued a strong message not just to us, but also to Chairman Ferguson and Commissioner [Melissa] Holyoak, implying that if they take actions he disapproves of, he has the authority to dismiss them as well,” Slaughter stated during an interview with GAPTEKZONE recently.
“If they refuse to help his political associates, they too will be considered fair game,” Slaughter stated.
Slaughter and Bedoya both showed concern over recent accounts of Zuckerberg’s lobbying activities.
“I am hopeful that we will not experience any political intervention,” Mr Bedoya stated to GAPTEKZONE.
The GAPTEKZONE reached out to the FTC for comments, but they did not reply.
Ferguson, nominated for the role of FTC chairman by Trump, has lately
told
When questioned about what he would do if the president instructed him to dismiss a lawsuit similar to the one against Meta, he stated that he would “follow legal directives.”
Ferguson remarked that he would be extremely astonished if something of that sort were to occur.
The FTC serves as a major antitrust overseer. Recently, it has refunded hundreds of millions of dollars to fraud victims and also implemented regulations prohibiting junk fees and subscription traps.
However, as the Meta trial gets underway, it stands among numerous autonomous regulatory bodies that this administration appears eager to curtail.
Chair Ferguson has only recently done so.
quoted
reiterating his conviction that autonomous regulatory agencies do not benefit democratic systems.
The FTC’s ‘uphill battle’
The FTC v Meta trial commences just as another significant antitrust case – USA v Google – advances into the remedy stage.
Last summer, the Department of Justice emerged victorious in the initial stage of that case when Judge Amit Mehta determined that Google dominates the online search sector with approximately a 90% market share, indicating a monopolistic hold.
Last month, the DOJ
reiterated
a request put forth during the Biden administration for a court to dismantle Google’s search monopoly.
Laura Phillips-Sawyer, an associate professor of business law at the University of Georgia, suggests that the FTC’s case against Meta may be more difficult to substantiate.
Ms. Phillips-Sawyer stated regarding the FTC, “I believe they face an incredibly challenging task.”
A considerable journey lies ahead before they even think about selling off Instagram or WhatsApp.
This is due to the fact that there is greater competition in the realm of personal networking services where Meta operates, as opposed to online searching, according to Ms. Phillips-Sawyer.
In a statement, Meta asserted that during the trial, “it will be demonstrated that which is known to every 17-year-old globally: Instagram, Facebook, and WhatsApp vie for attention alongside Chinese-owned platforms like TikTok, YouTube, X, iMessage, among numerous others.”
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