FTC Sues Meta Over Alleged Monopoly in Social Networking
Meta, the parent company of Facebook, Instagram, and WhatsApp, faces a lawsuit from the Federal Trade Commission (FTC) over alleged monopolistic practices. The FTC contends that Meta's acquisitions of Instagram and WhatsApp in 2012 and 2014 raised competitive concerns, six years after the deals were finalized. Lina M. Khan, the Chair of the FTC, is leading the case.
Meta argues against the lawsuit, stating that it does not hold a monopoly in the relevant market and has continuously innovated to improve its services. It also contends that breaking up the company would make it harder to reduce harmful content online and protect user privacy. Meta has filed a Motion for Summary Judgment in its ongoing case against the FTC.
The FTC's case focuses on its acquisitions of Instagram and WhatsApp, which it initially approved without raising competitive concerns. However, the FTC now argues that these deals did in fact raise such concerns. Meta counters that divesting these platforms could harm consumers by degrading the services and reducing competition.
The FTC's relevant market determination of 'personal social networking services' has been criticized for conveniently excluding competing companies like TikTok and Reddit. A similar complaint by the States against Meta was dismissed due to unreasonable delays in filing.
The lawsuit reflects growing antipathy towards mergers and acquisitions in U.S. antitrust policy, which could potentially hinder innovation and stifle the merger ecosystem. The outcome of this case will have significant implications for tech companies and the broader business community.
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