Meta faces a potentially business-altering antitrust trial as the FTC seeks to force divestiture of Instagram and WhatsApp, alleging the tech giant illegally eliminated competition through acquisition rather than innovation.

At a Glance

• The Federal Trade Commission’s trial against Meta began April 14th, focusing on whether Meta’s acquisitions of Instagram and WhatsApp violated antitrust laws
• If found liable, Meta could be forced to sell Instagram and WhatsApp in what would be a landmark breakup of a tech giant
• The case was initially filed during the Trump administration and continues under his second administration
• Meta CEO Mark Zuckerberg is expected to testify regarding accusations the company used a “buy or bury” strategy against competitors
• Meta argues it faces substantial competition from platforms like TikTok and that its acquisitions were approved by regulators at the time

The Government’s Case Against Meta

The Federal Trade Commission’s case against Meta centers on what it characterizes as an illegal strategy to eliminate competition and maintain dominance in social media. According to FTC attorney Daniel Matheson, Meta’s acquisitions of Instagram in 2012 and WhatsApp in 2014 “established entry barriers that for more than a decade protected Meta’s dominance.” The FTC argues that these acquisitions were part of a calculated “buy or bury” strategy that has limited consumer choice in the social media landscape for years.

The trial, presided over by Judge James Boasberg of the U.S. District Court for the District of Columbia, could last until July. The government aims to present evidence that Meta specifically targeted Instagram and WhatsApp as threats before acquiring them. This evidence reportedly includes internal communications from Meta executives, including CEO Mark Zuckerberg, who is expected to testify during proceedings. If successful, the case could result in a second trial to determine appropriate remedies.

Meta Platforms Inc. faces a historic antitrust trial beginning Monday that could force the tech giant to break off Instagram and WhatsApp, startups it bought more than a decade ago that have since grown into social media powerhouses.

The looming antitrust trial will be the… pic.twitter.com/5dY8hUM0OR

— Melissa Hallman (@dotconnectinga) April 14, 2025

Meta’s Defense Strategy

Meta’s attorneys have come out swinging against what they call the FTC’s “grab bag” case, claiming it is “at war with the facts, and at war with the law.” The company’s defense hinges on several key arguments, including the fact that both acquisitions were reviewed and approved by regulators when they occurred. Meta also points to significant competition from platforms like TikTok, Snapchat, YouTube, and Apple’s messaging applications as evidence that it doesn’t hold monopoly power.

“Meta slams FTC’s “grab bag” case as “at war with the facts, and at war with the law.””, said Meta’s attorney Mark Hansen

The company has presented data showing increased Facebook and Instagram usage when TikTok experienced outages, undermining the FTC’s narrow market definition that excludes TikTok as a competitor. Meta’s attorneys argue that consumers benefit from their acquisitions through constant improvements to the platforms. They’ve also challenged the FTC’s theory that users “pay” for free services by viewing advertisements, a key component of the government’s monopoly argument.

Meta goes to trial to avoid a breakup of Instagram and WhatsApp | Lauren Feiner & Alex Heath, The Verge

Did Meta illegally monopolize the market for “personal social networking services?”

On Monday, Meta will face the Federal Trade Commission in a legal fight that could reshape… pic.twitter.com/tUwttqPkug

— Owen Gregorian (@OwenGregorian) April 13, 2025

Potential Consequences for Tech Industry

If the FTC prevails, the implications would extend far beyond Meta. The case represents one of the most significant challenges to tech industry consolidation in decades and could reshape how antitrust laws are applied to digital platforms. A victory for regulators might chill merger and acquisition activity throughout Silicon Valley, where acquisitions by larger companies represent a common exit strategy for startups and their investors.

“Consumers do not have reasonable alternatives they can turn to.”, added FTC attorney Daniel Matheson.

For Meta specifically, the financial stakes are enormous. Instagram generates substantial advertising revenue for the company, while WhatsApp, though contributing less to current revenue, has the largest user base among Meta’s apps and represents a significant future growth opportunity through business messaging services. The FTC spokesperson Joe Simonson has made it clear that “the Trump-Vance FTC could not be more ready for this trial,” signaling the administration’s commitment to pursuing the case aggressively.