Meta’s Monopoly Trial: Here’s What to Know

(by Joseph Lord, The Epoch Times) – The fate of social media giant Meta, billionaire Mark Zuckerberg’s primary company, is on the line as a trial [began] in Washington on Monday to determine whether the tech giant is violating antitrust laws.

The Federal Trade Commission (FTC), which has spent the past six years investigating Meta, is expected to argue before U.S. District Judge James Boasberg that Meta’s acquisitions of Instagram and WhatsApp created an illegal monopoly over social networking.

In the worst-case scenario for Meta, the company could be forced to divest both subsidiaries in a breakup on a scale not seen since the dismantling of AT&T’s telephone empire more than 40 years ago.

Here’s what to know about the most important trial in Meta’s history.

Trial

The case is being held at the E. Barrett Prettyman U.S. Courthouse, just a few hundred yards from the U.S. Capitol.

It’s a bench trial, meaning Boasberg alone will decide the outcome, not a jury. That gives the judge extraordinary influence over the future of one of the most powerful companies in the world.

FTC Claims

The Federal Trade Commission investigation into the company began during President Donald Trump’s first term and was aggressively pursued under President Joe Biden.

The FTC has taken issue with the company’s 2012 purchase of the image-based app Instagram and 2014 purchase of WhatsApp, a messaging platform that’s particularly popular outside of the United States.

During the trial, the FTC is expected to argue that Meta’s purchase of the two platforms was part of a calculated effort to “buy or bury” any potential rivals to Facebook.

In a 2008 email presented by the FTC in a past federal court filing, Zuckerberg wrote, “It is better to buy than compete.”

FTC Chairman Andrew Ferguson has said that his agency is “raring to go” against Meta but also that he’ll follow lawful orders from the president to close the case.

Meta’s Response

Meta has consistently denied the allegations of operating an illegal monopoly and has argued that the FTC’s case is both outdated and out of step with current market realities.

A spokesperson for Meta said in a statement to The Epoch Times that the acquisitions were approved by regulators at the time and that the company has always operated competitively. He cited the presence of competitors such as TikTok, YouTube, X, iMessage, and others.

The spokesperson said the lawsuit “defies reality” and that it would send a message that “no deal is ever truly final” if Boasberg sides with the FTC.

The company has also suggested that dismantling its integrated platforms would harm users, who’ve come to rely on interconnected services and shared back-end systems.

Since Trump was elected to a second term, Zuckerberg has visited Mar-a-Lago, ended the company’s controversial fact-checking efforts [which targeted mainly Trump supporters and Trump], rolled back diversity, equity and inclusion [DEI] programs [which Trump and conservatives oppose], and staffed the company with GOP-friendly executives. …

‘Creaking Antitrust Precedents’

Boasberg has heard years of pretrial motions in this case and has made clear he isn’t fully sold on the government’s argument.

He threw out the FTC’s original filing in 2021, citing a lack of clear market definitions. While he allowed the revised case to proceed, he’s continued to express skepticism, warning in recent months that the FTC’s claims “strain this country’s creaking antitrust precedents.”

Antitrust statutory law and litigation are among the most labyrinthine areas of the federal code.

Boasberg has given both sides a chance to make their case in court. Witness lists include Zuckerberg himself, former Chief Operating Officer Sheryl Sandberg, and executives from rival platforms such as TikTok and Snapchat.

The trial is expected to last through the summer, with a decision potentially arriving by July.

Samantha Flom contributed to this report. 

Published at Epoch Times on April 8. Reprinted here for educational purposes only. May not be reproduced on other websites without permission.