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Meta faces antitrust claims at trial over Instagram and WhatsApp ownership
- Meta Platforms faces a high-stakes trial in Washington over claims of building an illegal social media monopoly through acquiring Instagram and WhatsApp, as US antitrust enforcers aim to unwind the deals. The FTC seeks to force Meta to restructure or sell parts of its business, including Instagram and WhatsApp.
- The trial is the first major test for the FTC under the second Trump administration and poses an existential threat to Meta, potentially leading to restructuring or divestments. Losing Instagram, its biggest revenue source, would be a significant blow to the company.
- Meta CEO Mark Zuckerberg is expected to testify, facing questioning about emails where he discussed neutralizing competitors like Instagram and WhatsApp. Meta argues its acquisitions have benefited users and are necessary for competition against other tech giants like TikTok and Google.
- The trial revolves around whether Meta holds a monopoly on platforms for sharing with friends and family, impacting the social media industry profoundly. If the FTC wins, Meta may have to sell Instagram or WhatsApp to restore competition.
- The former FTC chair Lina Khan described Meta’s acquisition strategy as a 'buy-or-bury scheme', raising concerns about fair competition in the social networking ecosystem. The trial's outcome could reshape the social media landscape significantly.
- In a ruling, the US district judge stated that while the FTC has sufficient evidence to proceed, questions remain about the strength of its claims. The trial, set to last until July, will determine the impact on Meta's bottom line, especially if Instagram is divested.
- Meta's revenue reliance on Instagram and WhatsApp, forecasted to generate billions, highlights the financial stakes of the trial. WhatsApp, with a large user base, could play a significant role in Meta's future revenue growth through services like business messaging.
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