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 19:19
  • msn.com
  • Keywords: Antitrust, FTC, Meta

The FTC is suing Meta over antitrust issues related to its Instagram and WhatsApp acquisitions. Mark Zuckerberg may be questioned for seven hours in the trial. Meta claims the deals benefited competition and consumers.

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Estimated market influence

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.

Context

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

Overview

  • The Federal Trade Commission (FTC) is pursuing an antitrust case against Meta (formerly Facebook), focusing on its acquisitions of Instagram ($1 billion in 2012) and WhatsApp ($19 billion in 2014).
  • The trial aims to dismantle Meta by separating Instagram and WhatsApp into standalone entities.
  • Mark Zuckerberg, Meta's CEO, is scheduled to testify for 7 hours, significantly longer than other witnesses like Instagram co-founder Kevin Systrom (3 hours).

Key Facts and Data Points

  • Acquisition Details:
    • Instagram: Acquired in 2012 for $1 billion.
    • WhatsApp: Acquired in 2014 for $19 billion.
  • Witness List:
    • Includes Mark Zuckerberg, Sheryl Sandberg (Meta COO), Adam Mosseri (Instagram head), and Javier Olivan (Meta’s current CEO).
  • FTC Allegations:
    • Meta engaged in unlawful monopolistic practices by acquiring competitors to stifle competition.
    • The FTC seeks to break up Meta by divesting Instagram and WhatsApp.

Market Trends and Business Impact

  • Increased Regulatory Scrutiny: Reflects a broader federal effort to intensify oversight of major tech companies.
  • Potential Breakup: If successful, the case could lead to the separation of Instagram and WhatsApp from Meta, reshaping the social media landscape.
  • Competitive Dynamics:
    • Could foster increased competition in the social media sector.
    • May create opportunities for smaller platforms and startups.

Strategic Considerations

  • Meta's Defense: The company claims that acquiring Instagram and WhatsApp has benefited consumers and competition.
  • Judicial Hurdles: Judge James Boasberg dismissed some FTC allegations but allowed central claims to proceed, cautioning the FTC on the challenges of proving its case.

Long-Term Effects and Regulatory Implications

  • Precedent Setting: Success could set a precedent for stricter antitrust enforcement against big tech companies.
  • Industry Impact: May influence future mergers and acquisitions in the tech sector, particularly in social media and messaging platforms.
  • Global Repercussions: Could inspire similar regulatory actions worldwide, affecting Meta's global operations.

Conclusion

The FTC’s case against Meta represents a significant milestone in antitrust enforcement, with far-reaching implications for competition, innovation, and regulatory frameworks in the tech industry.