The U.S. Federal Trade Commission (FTC) has launched a landmark antitrust trial against Meta, the parent company of Facebook, Instagram, and WhatsApp, in a case that could lead to the breakup of the social media giant. The trial, which began Monday in Washington, centers on accusations that Meta illegally suppressed competition by acquiring potential rivals Instagram and WhatsApp over a decade ago.
FTC: Meta Bought Out Rivals to Kill Competition
FTC attorney Daniel Matheson argued that Meta’s purchases were not about innovation, but about “neutralizing competitive threats.” He referenced internal communications, including a 2012 memo from CEO Mark Zuckerberg, which allegedly referred to Instagram as a threat to be “neutralized.”
“They decided that competition was too hard,” Matheson said in court. “It would be easier to buy out their rivals than to compete with them.”
The FTC alleges that these deals violated antitrust laws by consolidating Meta’s power in the social media market. The commission is seeking remedies that could include spinning off Instagram and WhatsApp into separate entities.
Meta Responds: Acquisitions Made Platforms Better
Meta’s legal team countered that the acquisitions were approved by regulators at the time, and that there is no precedent for calling such purchases unlawful so many years later. Company attorney Mark Hansen emphasized that Meta’s moves were aimed at improving the user experience and developing the platforms more effectively under Meta’s umbrella.
“Acquisitions to improve and grow have never been found unlawful, and they should not be found unlawful here,” Hansen stated.
Meta also argued it faces strong competition from other platforms like TikTok, X (formerly Twitter), YouTube, and Apple’s iMessage—undermining the FTC’s claim of market dominance.
A “Smoking Gun” and High-Profile Witnesses
The FTC is expected to rely heavily on internal communications from Zuckerberg and other executives, with legal experts pointing to statements like “better to buy than to compete” as potentially decisive.
Zuckerberg and former COO Sheryl Sandberg are both expected to testify during the trial, which could extend over several weeks.
Political Tensions and Lobbying Concerns
Though the case was filed during Trump’s first term, it has become increasingly politicized. According to reports, Zuckerberg has personally lobbied President Trump to have the FTC drop the case. While Meta has not denied these claims, it issued a statement calling the FTC’s lawsuit an “attack on business certainty,” adding that reopening cleared acquisitions undermines trust in regulatory processes.
Complicating matters further, Trump recently removed two Democratic FTC commissioners, leaving the agency briefly with a Republican majority. The dismissed commissioners—Rebecca Kelly Slaughter and Alvaro Bedoya—have filed suit, alleging political retaliation aimed at swaying the outcome of cases like this one.
“The president sent a very clear signal,” Slaughter told the BBC. “If they don’t do favors for his allies, they’re on the chopping block.”
What’s at Stake
If the FTC prevails, it would represent one of the most significant antitrust victories in modern U.S. history—with potential to unwind deals that helped define Meta’s global dominance. For Meta, it could mean divesting Instagram and WhatsApp, reshaping not only its business model but the broader tech landscape.
