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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.

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How quantum could supercharge Google’s AI ambitions

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How quantum could supercharge Google’s AI ambitions

Inside a secretive set of buildings in Santa Barbara, California, scientists at Alphabet are working on one of the company’s most ambitious bets yet. They’re attempting to develop the world’s most advanced quantum computers.

“In the future, quantum and AI, they could really complement each other back and forth,” said Julian Kelly, director of hardware at Google Quantum AI.

Google has been viewed by many as late to the generative AI boom, because OpenAI broke into the mainstream first with ChatGPT in late 2022.

Late last year, Google made clear that it wouldn’t be caught on the backfoot again. The company unveiled a breakthrough quantum computing chip called Willow, which it says can solve a benchmark problem unimaginably faster than what’s possible with a classical computer, and demonstrated that adding more quantum bits to the chip reduced errors exponentially. 

“That’s a milestone for the field,” said John Preskill, director of the Caltech Institute for Quantum Information and Matter. “We’ve been wanting to see that for quite a while.”

Willow may now give Google a chance to take the lead in the next technological era. It also could be a way to turn research into a commercial opportunity, especially as AI hits a data wall. Leading AI models are running out of high-quality data to train on after already scraping much of the data on the internet.

“One of the potential applications that you can think of for a quantum computer is generating new and novel data,” said Kelly. 

He uses the example of AlphaFold, an AI model developed by Google DeepMind that helps scientists study protein structures. Its creators won the 2024 Nobel Prize in Chemistry. 

“[AlphaFold] trains on data that’s informed by quantum mechanics, but that’s actually not that common,” said Kelly. “So a thing that a quantum computer could do is generate data that AI could then be trained on in order to give it a little more information about how quantum mechanics works.” 

Kelly has said that he believes Google is only about five years away from a breakout, practical application that can only be solved on a quantum computer. But for Google to win the next big platform shift, it would have to turn a breakthrough into a business. 

Watch the video to learn more.

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Nintendo Switch 2 retail preorder to begin April 24 following tariff delays

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Nintendo Switch 2 retail preorder to begin April 24 following tariff delays

An attendee wearing a Super Mario costume uses a Nintendo Switch 2 game console while playing a video game during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025. 

Isabel Infantes | Reuters

Nintendo on Friday announced that retail preorder for its Nintendo Switch 2 gaming system will begin on April 24 starting at $449.99.

Preorders for the hotly anticipated console were initially slated for April 9, but Nintendo delayed the date to assess the impact of the far-reaching, aggressive “reciprocal” tariffs that President Donald Trump announced earlier this month.

Most electronics companies, including Nintendo, manufacture their products in Asia. Nintendo’s Switch 1 consoles were made in China and Vietnam, Reuters reported in 2019. Trump has imposed a 145% tariff rate on China and a 10% rate on Vietnam. The latter is down from 46%, after he instituted a 90-day pause to allow for negotiations.

Nintendo said Friday that the Switch 2 will cost $449.99 in the U.S., which is the same price the company first announced on April 2.

“We apologize for the retail pre-order delay, and hope this reduces some of the uncertainty our consumers may be experiencing,” Nintendo said in a statement. “We thank our customers for their patience, and we share their excitement to experience Nintendo Switch 2 starting June 5, 2025.”

The Nintendo Switch 2 and “Mario Kart World bundle will cost $499.99, the digital version “Mario Kart World” will cost $79.99 and the digital version of “Donkey Kong Bananza” will cost $69.99, Nintendo said. All of those prices remain unchanged from the company’s initial announcement.

However, accessories for the Nintendo Switch 2 will “experience price adjustments,” the company said, and other future changes in costs are possible for “any Nintendo product.”

It will cost gamers $10 more to by the dock set, $1 more to buy the controller strap and $5 more to buy most other accessories, for instance.

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Etsy touts ‘shopping domestically’ as Trump tariffs threaten price increases for imports

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Etsy touts 'shopping domestically' as Trump tariffs threaten price increases for imports

An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.

Victor J. Blue/Bloomberg via Getty Images

Etsy is trying to make it easier for shoppers to purchase products from local merchants and avoid the extra cost of imports as President Donald Trump’s sweeping tariffs raise concerns about soaring prices.

In a post to Etsy’s website on Thursday, CEO Josh Silverman said the company is “surfacing new ways for buyers to discover businesses in their countries” via shopping pages and by featuring local sellers on its website and app.

“While we continue to nurture and enable cross-border trade on Etsy, we understand that people are increasingly interested in shopping domestically,” Silverman said.

Etsy operates an online marketplace that connects buyers and sellers with mostly artisanal and handcrafted goods. The site, which had 5.6 million active sellers as of the end of December, competes with e-commerce juggernaut Amazon, as well as newer entrants that have ties to China like Temu, Shein and TikTok Shop.

By highlighting local sellers, Etsy could relieve some shoppers from having to pay higher prices induced by President Trump’s widespread tariffs on trade partners. Trump has imposed tariffs on most foreign countries, with China facing a rate of 145%, and other nations facing 10% rates after he instituted a 90-day pause to allow for negotiations. Trump also signed an executive order that will end the de minimis provision, a loophole for low-value shipments often used by online businesses, on May 2.

Temu and Shein have already announced they plan to raise prices late next week in response to the tariffs. Sellers on Amazon’s third-party marketplace, many of whom source their products from China, have said they’re considering raising prices.

Silverman said Etsy has provided guidance for its sellers to help them “run their businesses with as little disruption as possible” in the wake of tariffs and changes to the de minimis exemption.

Before Trump’s “Liberation Day” tariffs took effect, Silverman said on the company’s fourth-quarter earnings call in late February that he expects Etsy to benefit from the tariffs and de minimis restrictions because it “has much less dependence on products coming in from China.”

“We’re doing whatever work we can do to anticipate and prepare for come what may,” Silverman said at the time. “In general, though, I think Etsy will be more resilient than many of our competitors in these situations.”

Still, American shoppers may face higher prices on Etsy as U.S. businesses that source their products or components from China pass some of those costs on to consumers.

Etsy shares are down 17% this year, slightly more than the Nasdaq.

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