Mark Zuckerberg likely to be questioned for 7 hours in the case filed during Donald Trump's first Presidency term, Facebook says: 'We are confident that ...'

Mark Zuckerberg likely to be questioned for 7 hours in the case filed during Donald Trump's first Presidency term, Facebook says: 'We are confident that ...'

  • 16.03.2025 18:24
  • msn.com
  • Keywords: Antitrust, FTC, Meta

Mark Zuckerberg may face a 7-hour FTC questioning in an antitrust trial targeting Meta's acquisition of Instagram and WhatsApp. The FTC aims to break up Meta by separating these platforms, while Meta defends its actions as benefiting competition and consumers.

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Meta

Meta

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Analyst rating: Strong buy

The FTC is seeking to break up Meta by compelling it to divest Instagram and WhatsApp into standalone entities.

Instagram

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Analyst rating: N/A

FTC claims that acquiring Instagram has allowed Meta to maintain an unlawful monopoly in the social media sector.

WhatsApp

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Analyst rating: N/A

Similar to Instagram, WhatsApp's acquisition is part of FTC's argument against Meta's monopolistic practices.

Federal Trade Commission (FTC)

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Analyst rating: N/A

The FTC is leading the antitrust case against Meta, aiming to break up the company by divesting key assets like Instagram and WhatsApp.

Context

Analysis of FTC vs. Meta Antitrust Case: Business Insights and Market Implications

Overview

  • FTC Antitrust Trial: The Federal Trade Commission (FTC) is preparing to question Meta executives, including Mark Zuckerberg, as part of an antitrust trial targeting the company's acquisitions of Instagram and WhatsApp.
  • Key Executives Testifying: Prominent figures such as Mark Zuckerberg, Sheryl Sandberg, Adam Mosseri, and Javier Olivan are scheduled to testify. Zuckerberg is expected to be questioned for up to 7 hours, significantly longer than other witnesses.

Acquisition Details

  • Instagram Acquisition: Acquired by Facebook (now Meta) in 2012 for $1 billion.
  • WhatsApp Acquisition: Acquired in 2014 for $19 billion.

FTC Allegations

  • Unlawful Monopoly: The FTC claims Meta has maintained an unlawful monopoly in the social media sector.
  • Elimination of Competition: The agency alleges that Meta overpaid for Instagram and WhatsApp to suppress competition.

FTC's Proposed Remedy

  • Divestiture: The FTC seeks to break up Meta by compelling it to divest Instagram and WhatsApp into standalone entities.

Legal Timeline

  • Case Filing: Initiated in 2020 under the Trump administration.
  • Judge's Ruling: In November 2023, Judge James Boasberg dismissed some FTC allegations but allowed central claims regarding Instagram and WhatsApp to proceed to trial.
  • Challenges for FTC: The judge noted that the FTC faces significant challenges in proving its case and warned about pushing boundaries with "aging antitrust precedents."

Meta's Defense

  • Meta's Stance: A spokesperson stated, "We are confident that the evidence presented at trial will demonstrate that acquiring Instagram and WhatsApp has benefited both competition and consumers."

Market and Industry Implications

  • Potential Breakup Impact: If successful, the FTC's case could lead to the breakup of Meta, reshaping the tech industry landscape.
  • Competitive Dynamics: The trial could set a precedent for antitrust enforcement against major technology companies, potentially encouraging more competitive markets.
  • Regulatory Precedent: The outcome may influence future regulatory actions against other tech giants and redefine antitrust frameworks in the U.S.

Long-Term Effects

  • Industry Reconfiguration: A successful FTC case could lead to increased competition and innovation in the social media sector.
  • Strategic Considerations for Meta: The company must prepare for potential divestitures while defending its business practices in court.