Meta has won its antitrust case against the Federal Trade Commission. The FTC said Meta held an illegal monopoly in social networking — centering on the company’s acquisitions of WhatsApp and Instagram.
Judge James Boasberg of the US District Court for the District of Columbia released a memorandum opinion on Tuesday, stating that the FTC failed to prove its claims in court.
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“Whether or not Meta enjoyed monopoly power in the past,” Boasberg wrote in the filing, “the agency must show that it continues to hold such power now.”
Boasberg initially dismissed the FTC’s complaint in 2021, stating that the agency lacked sufficient evidence that Meta holds “market power” in the social networking industry. At the time, the FTC argued that “Facebook’s course of conduct has eliminated nascent rivals,” preventing “the benefits of competition, including increased choice, quality and innovation” from developing for US social media users.
After the FTC amended its filing with information about Meta’s user numbers and acquisitions of the WhatsApp and Instagram applications, Boasberg allowed the case to proceed in 2022.
The trial began in April, and multiple high-ranking current and former Meta executives testified before the court — chief among them, Meta CEO Mark Zuckerberg. Much of Zuckerberg’s testimony focused on refuting the FTC’s primary claim, which hinged on an argument Zuckerberg made in 2008: “It is better to buy than compete.”
Meta’s win means the company will be able to continue operating WhatsApp and Instagram unimpeded. Had the FTC proven its claims in court, Meta likely would have had to break these applications off into their own separate social networking companies.
Meta released a public statement on Tuesday, stating that the decision “recognizes that Meta faces fierce competition” in the social networking industry.
“Our products are beneficial for people and businesses and exemplify American innovation and economic growth,” the statement read. “We look forward to continuing to partner with the Administration and to invest in America.”
FTC Director of Public Affairs Joe Simonson said the agency is “deeply disappointed” with the outcome of the case.
“The deck was always stacked against us with Judge Boasberg, who is currently facing articles of impeachment,” he said. “We are reviewing all our options.”
Republican lawmakers have tried multiple times to impeach Boasberg, a frequent political target of the Trump administration.
While Meta’s antitrust case may be over, it didn’t take place in a vacuum. Google recently settled a case with the FTC that resulted in the search giant being told it must share limited search and user-interaction data with “qualified competitors.” Another case targeting Google’s AI overview feature is ongoing in the European Union, as a group of publishers claims the company is causing harm due to a loss of traffic, readership, and revenue.
