The future of Mark Zuckerberg’s Meta is in a federal judge’s hands following the conclusion of a seven-week antitrust trial brought forth by FTC.
The landmark antitrust trial between Meta and the FTC has come to a close, leaving the fate of the social media behemoth in the hands of US District Judge James Boasberg. The trial, which lasted seven weeks, exposed a plethora of internal communications and documents that shed light on Meta’s business practices and strategies.
Throughout the proceedings, the FTC presented evidence that painted a picture of Meta’s alleged monopolistic behavior in the social media market. One of the strongest pieces of evidence was a 2012 email from Meta CEO Mark Zuckerberg, in which he admitted that the acquisition of Instagram would “neutralize a competitor.” Additionally, internal reports surfaced, revealing that Meta executives were aware that Instagram was directing minors towards groomers on the platform.
Despite this evidence, the outcome of the case is expected to hinge on how Judge Boasberg defines the market in which Meta operates. The FTC argued that Meta holds an illegal monopoly over a narrowly-defined market of social media platforms built on friends-and-family connections, with Snapchat being its only significant competitor. In contrast, Meta countered that its apps face fierce competition from other platforms such as China’s TikTok and Google-owned YouTube for user attention.
The FTC’s case revolves around accusations that Meta employed a “buy or bury” strategy to stifle emerging social media apps, such as Instagram and WhatsApp, before they could threaten its social media empire. The agency is seeking a forced divestiture of Instagram, which Meta acquired for $1 billion in 2012, and WhatsApp, acquired for $18 billion in 2014.
During the trial, Instagram co-founder Kevin Systrom testified that Zuckerberg had treated his app as a “threat” to Meta’s core Facebook business. Systrom claimed that Zuckerberg had deprived Instagram of necessary resources, including approving necessary headcount to improve safety standards on the app in the wake of the Cambridge Analytica data privacy scandal.
Meta and Zuckerberg, on the other hand, argued that Instagram’s rise to prominence was not a foregone conclusion and that the company’s support had facilitated rather than hindered its growth. Meta’s attorneys also petitioned the judge to dismiss the case mid-trial, asserting that the FTC had failed to meet its burden of evidence. However, Judge Boasberg rejected the petition.
With in-person arguments concluded, attorneys for both the FTC and Meta will submit written briefs outlining their arguments for and against a breakup for Judge Boasberg’s review. The judge has stated that he will move “expeditiously” to issue a ruling in the case.
A Meta spokesperson told Breitbart News: “We have rested our case against the FTC’s weak antitrust lawsuit. After six weeks trying their case to undo acquisitions made over a decade ago and show that no deal is ever truly final, the only thing the FTC showed was the dynamic, hyper-competitive nature of the past, present and future of the technology industry. Meta is a proud American success story, and we look forward to continuing to innovate and serve the people and businesses who love our services.”
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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