Meta Prevails in FTC Antitrust Trial Over Instagram and WhatsApp Acquisitions
Meta scored a major legal victory on Tuesday after a U.S. federal judge ruled in its favor in a long-running antitrust lawsuit brought by the Federal Trade Commission. The agency had accused Meta of maintaining a monopoly in the social networking market through its acquisitions of Instagram and WhatsApp.
In a memorandum opinion released by Judge James Boasberg of the U.S. District Court in Washington, D.C., the judge concluded that the FTC failed to prove Meta currently holds monopoly power. Although the FTC argued that Meta’s past dominance in social networking justified antitrust action, the court found insufficient evidence of any present-day violation.
“Whether or not Meta enjoyed monopoly power in the past, the agency must show that it continues to hold such power now,” Boasberg wrote. “The Court’s verdict today determines that the FTC has not done so.”
FTC’s Case Falls Short After Years of Litigation
The ruling closes a case that dates back five years. Judge Boasberg originally dismissed the FTC’s complaint in 2021, stating that the agency had not demonstrated that Facebook held substantial market power. Later that year, the FTC submitted an expanded complaint including new metrics and comparisons with competitors such as Snapchat, Myspace, and the now-defunct Google+.
After reviewing those updates, the judge allowed the lawsuit to move forward in 2022—but ultimately found the revised evidence insufficient to prove that Meta currently violates antitrust law.
“In the end, the FTC simply did not show a present or imminent legal violation,” Boasberg wrote, emphasizing that antitrust enforcement must be tied to conditions in today’s market, not the landscape of a decade ago.
FTC Responds to the Setback
Following the decision, FTC public affairs director Joe Simonson expressed frustration with the outcome, calling the ruling “deeply disappointing.” He suggested the agency may consider additional legal options, while also criticizing Boasberg, who is currently facing unrelated impeachment discussions in Congress.
Meta Applauds The Decision
Meta executives, including CEO Mark Zuckerberg, former COO Sheryl Sandberg, and Instagram co-founder Kevin Systrom, testified during the trial. After the ruling, Meta’s Chief Legal Officer Jennifer Newstead praised the decision as evidence of a highly competitive social media landscape.
“The Court’s decision today recognizes that Meta faces fierce competition,” Newstead said. “Our products benefit people and businesses, and we look forward to continuing to innovate and contribute to American economic growth.”
Meta’s stock dipped less than 1% on Tuesday, bringing its year-to-date gain to just about 2%—a stark contrast to broader tech sector performance.
Context: Other Major Antitrust Cases in Tech
The decision comes shortly after Google avoided the most severe potential penalties in a separate antitrust ruling. While a federal judge found Google guilty of maintaining a search monopoly, the court declined to force the company to divest its Chrome browser. Google was, however, ordered to make changes to how it manages search data.
Why the FTC’s Argument Failed
The FTC argued that Meta should never have been permitted to acquire Instagram in 2012 for $1 billion or WhatsApp in 2014 for $19 billion. The agency claimed those acquisitions eliminated meaningful competition and boxed consumers into Meta’s ecosystem.
However, Judge Boasberg highlighted a key issue: today’s social networking market looks radically different from the Facebook-dominated landscape of the early 2010s. The rise of TikTok, YouTube, and other major platforms has reshaped how people communicate and share content online.
“People treat TikTok and YouTube as substitutes for Facebook and Instagram,” Boasberg wrote, adding that Meta pro
