Connect with us

Published

on

This photo illustration created on January 7, 2025, in Washington, DC, shows an image of Mark Zuckerberg, CEO of Meta, and an image of the Meta logo. 

Drew Angerer | Afp | Getty Images

Meta will face off against the U.S. Federal Trade Commission on Monday in a high-stakes antitrust trial that could result in the company divesting Instagram and WhatsApp.

The trial in Washington is expected to last weeks and centers around the FTC’s allegations that Meta monopolizes the personal social networking market. CEO Mark Zuckerberg, former COO Sheryl Sandberg, Instagram co-founder Kevin Systrom and other current and former Meta executives are expected to testify, along with top brass from rivals TikTok, Snap and Google’s YouTube, according to a legal filing.

The FTC claims Meta shouldn’t have been allowed to buy Instagram for $1 billion in 2012 and WhatsApp for $19 billion in 2014, and the agency is calling for those units to be sliced off from the Menlo Park, California, company.

“Acquiring these competitive threats has enabled Facebook to sustain its dominance—to the detriment of competition and users—not by competing on the merits, but by avoiding competition,” the FTC said in a legal filing.

Meta disagrees and filed a pretrial brief last week reiterating its arguments that it is not a monopoly and that acquiring Instagram and WhatsApp has not harmed competition. 

The trial will test the boundaries of the U.S.’s antitrust laws pertaining to corporate acquisitions, said Prasad Krishnamurthy, a law professor at U.C. Berkeley Law. The FTC will have to prove that not only did Meta monopolize the social media market but that its acquisitions of Instagram and WhatsApp actively “harmed competition.”  

“It’s a big case because it involves Meta, a social media giant, and it involves one of the most important kind of markets in the world, the social media market,” Krishnamurthy said. “It has big implications for something that consumers use as part of their daily life, Instagram and WhatsApp.”

Judge James E. Boasberg, chief judge of the Federal District Court in DC, stands for a portrait at E. Barrett Prettyman Federal Courthouse in Washington, DC on March 16, 2023. 

Carolyn Van Houten | The Washington Post | Getty Images

The lead up to the trial

The FTC filed its antitrust case against Meta in 2020, but judge James Boasberg of the U.S. District Court in Washington dismissed the case in 2021, saying the agency did not have enough evidence to prove “Facebook holds market power.” 

Despite the dismissal, the FTC in August 2021 filed an amended complaint with more details about the company’s user numbers and metrics relative to competitors like Snapchat, the now-defunct Google+ social network and Myspace. After reviewing the amendments, Boasberg in 2022 ruled that the case could proceed, saying the FTC had presented more details than before. 

“Although the agency may well face a tall task down the road in proving its allegations, the Court believes that it has now cleared the pleading bar and may proceed to discovery,” Boasberg wrote.

Meta motioned to end the case last April, but Boasberg denied it, ruling in November that the company must face trial. In a small victory for Meta, however, Boasberg did dismiss the FTC’s allegation that Facebook restricted third-party app developers’ access to its platform to maintain market dominance.

The company is expected to push back on the rest of the FTC’s allegations at trial on Monday. In a recent pre-trial brief, Meta’s lawyers wrote that the FTC fails to acknowledge that the company competes with numerous rivals, including TikTok, YouTube and Apple’s iMessage.

But the FTC’s core argument is that the company has monopolized the specific market of personal social networking, saying there are no major alternatives to Meta’s apps like Facebook and Instagram, which are used by people to stay up to date and communicate with friends and family in an online, shared-social space.

This disputed notion of the market that Meta operates and competes in could be crucial to the case’s outcome, Krishnamurthy said.

“When you look at antitrust cases, the market definition that comes out of the case, even what ends up being the one that determines the ruling, is often not anything remotely like how lay people or even businesses in that market will describe it,” Krishnamurthy said.

Andrew Ferguson, Commissioner of the Federal Trade Commission, speaks at a fireside chat at Harvard University’s second annual Conservative and Republican Student Conference 2025 at The Charles Hotel in Cambridge, Massachusetts, U.S., Feb. 8, 2025.

Sophie Park | Reuters

What happens now

The case kicks off Monday and is expected to last several weeks, and it could be months before Boasberg issues a ruling. It’s also unclear how the change of power in Washington could impact the case. 

After being inaugurated in January, President Donald Trump replaced FTC Chair Lina Khan with Andrew Ferguson. Khan served as chair of the commission under former President Joe Biden and earned a reputation for being tough on businesses.

With the tech industry in particular, Khan brought an antitrust case against Amazon in 2023 and unsuccessfully sued to block Meta, Nvidia and Microsoft’s acquisitions of virtual reality startup Within, chip-design giant Arm and Activision Blizzard, respectively.

Though this case kicked off during Trump’s first time in office, Khan continued to pursue it during the Biden administration, telling a House Committee in May 2024 that the lawsuit “highlights the competitive importance of data and notes that privacy degradation can constitute an antitrust harm.”

Some legal experts have said that Trump’s pick of Ferguson could mean the FTC eases up on antitrust enforcement.

Zuckerberg has courted favor with the Trump administration as part of a broader policy change within Meta. The social media baron has reportedly met with the president at least three times since January, he attended Trump’s inauguration and he co-hosted a ball for the president in Washington.

Khan told CNBC’s “Squawk Box” in early Jan. that she hopes the new Trump Administration won’t give Meta a “sweetheart deal” in the FTC case after Zuckerberg’s overtures to the White House.

Ferguson, however, has not indicated that the FTC plans to abandon its case, and in March, he told CNBC that his team has a “trial coming up” and that they are “pressing toward that.”

“My job is to make sure that everyone is complying with the antitrust laws,” Ferguson said. “And if they aren’t, we go to court.”

Ferguson is painting himself as an independent and is proceeding with trial outside of the broader political world, said George Hay, an antitrust law professor at Cornell Law School. Hay added that he’s pleased that Ferguson appears to be moving forward with the case despite much of its progress occurring during the Biden Administration.

“When you come in to the FTC, you inherit a staff of professionals who’ve been doing a lot of work, and it’s not that easy just to say, ‘Throw it all away,'” Hay said.

WATCH: Apple, Meta to face lighter fines under EU digital law.

Apple, Meta to face lighter fines under EU digital law: Report

Continue Reading

Technology

Meta’s big antitrust win, Salesforce’s deal closure, and iPhone’s popularity in China

Published

on

By

Meta's big antitrust win, Salesforce's deal closure, and iPhone's popularity in China

Continue Reading

Technology

Meta wins FTC antitrust trial that focused on WhatsApp, Instagram

Published

on

By

Meta wins FTC antitrust trial that focused on WhatsApp, Instagram

Meta CEO Mark Zuckerberg appears at the Meta Connect event in Menlo Park, California, on Sept. 25, 2024.

David Paul Morris | Bloomberg | Getty Images

Meta won its high-profile antitrust case against the Federal Trade Commission, which had accused the company of holding a monopoly in social networking.

In a memorandum opinion released Tuesday, Judge James Boasberg of the U.S. District Court in Washington, D.C., said the FTC failed to prove its argument. The case, initially filed by the FTC five years ago, centered on Meta’s acquisitions of Instagram and WhatsApp.

“Whether or not Meta enjoyed monopoly power in the past, though, the agency must show that it continues to hold such power now,” Boasberg said in the filing. “The Court’s verdict today determines that the FTC has not done so. A judgment so stating shall issue this day.”

Boasberg dismissed the case in 2021, saying the agency didn’t have enough evidence to prove “Facebook holds market power.” In August of that year, the FTC filed an amended complaint with more details about the company’s user numbers and metrics relative to competitors like Snapchat, the now-defunct Google+ social network and Myspace.

After reviewing the amendments, Boasberg in 2022 ruled that the case could proceed, saying the FTC had presented more details than before.

Meta CEO Mark Zuckerberg, former operating chief Sheryl Sandberg, Instagram co-founder Kevin Systrom and other current and former Meta executives all testified in the trial, which began in April.

Meta shares were little changed on Tuesday. The stock is up about 2% for the year, badly underperforming broader indexes and most of its megacap tech peers.

“The Court’s decision today recognizes that Meta faces fierce competition,” the company said in a statement. “Our products are beneficial for people and businesses and exemplify American innovation and economic growth. We look forward to continuing to partner with the Administration and to invest in America.” 

The FTC didn’t immediately respond to a request for comment.  

The ruling comes a little over two months after Google avoided the harshest possible penalty from an antitrust case it lost last year. While Google was found to hold an illegal monopoly in its core market of internet search, U.S. District Judge Amit Mehta decided the company would not be forced to sell its Chrome browser, bucking the Department of Justice’s request. Google was, however, ordered to loosen its hold on search data.

Former FTC Chair Lina Khan on Meta antitrust trial regarding Instagram, WhatsApp ownership

In the Meta case, the FTC claimed the company shouldn’t have been allowed to buy Instagram for $1 billion in 2012 and WhatsApp for $19 billion in 2014, and the agency called for those units to be divested. The commission also alleged that there were no major alternatives for apps like Facebook and Instagram that people use to communicate with friends and family in a online, social space.

However, a major challenge for the FTC, according to the judge, was in proving that Meta is breaking antitrust law today, not years ago when the primary use of social networks was very different and based on sharing other kinds of content.

“To win the permanent injunction that it seeks here, the FTC must prove a current or imminent legal violation,” he wrote.

Boasberg ultimately sided with Meta’s argument that the technology industry has evolved since the early days of Facebook, and the company now faces a wide variety of competitors like TikTok.

“While each of Meta’s empirical showings can be quibbled with, they all tell a consistent story: people treat TikTok and YouTube as substitutes for Facebook and Instagram, and the amount of competitive overlap is economically important,” Boasberg wrote. “Against that unmistakable pattern, the FTC offers no empirical evidence of substitution whatsoever.”

Big changes in social

Much of Judge Boasberg’s conclusion was built on the transformation that’s taken place in the social media market in recent years and Meta’s changing position within it. User trends have moved heavily in the direction of video, where TikTok and YouTube have massive user bases and huge network effects.

“The most-used part of Meta’s apps is thus indistinguishable from the offerings on TikTok and YouTube,” Boasberg wrote.

President Trump signs TikTok deal: Here's what to know
FTC Chair on independence: Democracy requires Pres. Trump have power to remove board members at will

Continue Reading

Technology

Waymo says it will launch in more Texas and Florida cities in 2026

Published

on

By

Waymo says it will launch in more Texas and Florida cities in 2026

A Waymo autonomous self-driving Jaguar taxi drives along a street on March 14, 2024 in Los Angeles, California.

Mario Tama | Getty Images

Waymo on Tuesday said it will bring its robotaxi service to new cities in Texas and Florida in 2026.

The Alphabet-owned company said it plans to start operating its vehicles with no human driver assistants in Dallas, Houston, San Antonio, Miami and Orlando in the coming weeks before opening service in those markets to the public next year, the company said in a blog.

“Waymo has entered a new phase of commercial scale, doubling the number of cities we operate without a human specialist in the car,” Waymo Chief Product Officer Saswat Panigrahi said in an emailed statement Tuesday.

Waymo had previously announced plans to launch its robotaxi service in Dallas and Miami in 2026, but Tuesday was the first time the company said it planned to launch service next year in the other cities. Waymo will first offer fully autonomous trips to its employees in those markets, a spokesperson said.

The company has been gearing up to expand its paid robotaxis service in 2026. The company previously announced plans to expand to Detroit, Las Vegas, Nashville, San Diego, Washington, D.C., and London in 2026.

Waymo has also begun testing vehicles in New York City and Tokyo.

Last week, Waymo began offering freeway routes in the San Francisco, Phoenix and Los Angeles markets. The Google sister company will gradually extend freeway trips to more riders and locations over time.

Already, Waymo operates its paid robotaxi service in Austin, San Francisco, Phoenix, Atlanta and Los Angeles. The company has provided more than 10 million paid rides since first launching in 2020, the company said in May.

Waymo’s Florida and Texas expansion announcement comes the same day that Amazon-owned Zoox began allowing select San Francisco users to hail its driverless vehicles. San Francisco is the second market where Zoox now offers a free service, after its launch in Las Vegas in September. Zoox has deployed a fleet of 50 robotaxis between San Francisco and Las Vegas, the company told CNBC in September.

WATCH: Waymo launches paid robotaxi rides on freeways

Watch: Waymo launches paid robotaxi rides on freeways

Continue Reading

Trending