Meta vs FTC: Zuckerberg defends acquisitions in high-stakes monopoly trial

Meta CEO Mark Zuckerberg testifies in antitrust trial, defending Instagram and WhatsApp acquisitions amid FTC claims of stifling competition; a potential breakup looms

Meta CEO Mark Zuckerberg defended his company’s acquisition strategy while appearing in court as the first witness in a high-profile antitrust trial that could dramatically reshape the future of the $1.4 trillion tech giant.

 

The US Federal Trade Commission (FTC) has charged Meta with maintaining an illegal monopoly in the social media space by acquiring rivals Instagram and WhatsApp to stifle emerging competition.

 

Defending the acquisitions, Zuckerberg, who appeared in the court on Monday, said the purchases of Instagram and WhatsApp were intended to bolster innovation and user experience.

 

Acknowledging how the platform has evolved, he said, “Over time, the ‘interest’ part of that has gotten built out more than the friend part,” he said. Zuckerberg also referred to the increasing popularity of content discovery beyond personal connections. However, he maintained that relationships with friends and family remain central to Meta’s mission.

 

 

The case, if successful, could lead to Meta being forced to divest the two platforms, marking one of the most significant antitrust actions against a tech company in decades.

 

Government claims Meta left users with 'no reasonable alternatives'

 

In opening statements, FTC lead attorney Daniel Matheson argued that Meta's dominance through Facebook, Instagram, and WhatsApp has left consumers with limited choices.

 

According to Matheson, the company made these acquisitions “to avoid competition,” effectively locking up the market the FTC defines as “personal social networking” — platforms that help users connect primarily with friends and family.

 

Meta, Matheson claimed, offers users “no reasonable alternatives,” alleging that its strategy has been to preserve its market power by neutralising threats rather than competing with them.

 

The FTC argues that Meta’s overwhelming reach is not merely a reflection of its popularity but a sign of diminished competition — something antitrust law is meant to prevent.

 

Meta counters with broad market view, rising rivals

 

Meta’s attorneys pushed back on the FTC’s characterisation of the social networking market as narrow and outdated. They argued that the company competes vigorously with a range of digital platforms, including TikTok, Snapchat, YouTube, and even Apple’s iMessage, making it far from a monopoly.

 

Their legal strategy also highlighted that both Instagram (acquired in 2012) and WhatsApp (2014) were cleared by regulators at the time. “The FTC’s case rests almost entirely on decade-old emails,” Meta’s legal team said.

 

Internal emails at the heart of FTC’s case

 

A critical piece of the FTC’s evidence includes internal Meta communications, such as a 2012 email in which Zuckerberg discussed the potential to “neutralise a competitor” by buying Instagram. In another exchange, he noted that Facebook’s own photo-sharing app was lagging behind.

 

Zuckerberg acknowledged the existence of these emails but insisted they were part of broader internal discussions and “taken out of context.” He maintained that Meta made significant investments in both Instagram and WhatsApp following the acquisitions, supporting their growth rather than stifling it.

 

'Meta slowed Instagram to protect Facebook'

 

The FTC stated that after acquiring Instagram, Meta intentionally curtailed its development to avoid undermining Facebook’s market position. Matheson called this a “rational business decision” from a corporate standpoint but argued that it “offends the policy” goals of antitrust law, which seek to protect consumer choice and competition.

 

What’s at stake: Potential breakup and billions in ad revenue

 

Zuckerberg is set to return to the witness stand on Tuesday as the trial continues. Further testimony is expected to shed more light on Meta’s internal operations and competitive strategies. Other prominent witnesses, including former COO Sheryl Sandberg and Instagram co-founder Kevin Systrom, are expected to testify in the coming weeks.

 

Should the court side with the FTC, Meta may be forced to unwind its acquisitions of Instagram and WhatsApp — a move that would upend years of integration and strike a major blow to the company’s business model. Instagram alone is forecast to generate over half of Meta’s US advertising revenue by 2025.

 

Several high-profile figures to take the stand

 

The trial is being overseen by US District Judge James Boasberg and is expected to continue for eight weeks. A number of prominent figures from Meta and the broader tech industry are slated to testify, including:

 

Mark Zuckerberg, Meta CEO and founder

Sheryl Sandberg, former Chief Operating Officer of Meta

Mike Schroepfer, former Chief Technology Officer

Kevin Systrom, co-founder of Instagram

Executives from rival platforms, who may shed light on industry competition and market dynamics

 

(With agency inputs)