FTC Antitrust Trial Against Meta Begins, Casting Spotlight on Instagram and WhatsApp Acquisitions

The Federal Trade Commission's (FTC) antitrust trial against Meta Platforms Inc. commenced on April 14, 2025, in Washington, D.C., marking a significant legal challenge to the tech giant's acquisitions of Instagram and WhatsApp. The FTC alleges that these purchases were strategic moves to eliminate competition and maintain a monopoly in the social media market.

Central to the FTC's case is the assertion that Meta employed a "buy or bury" strategy, acquiring potential competitors to stifle competition. The agency contends that the 2012 acquisition of Instagram and the 2014 purchase of WhatsApp were deliberate efforts to neutralize emerging threats in the social media landscape. Meta, however, argues that these acquisitions have benefited consumers by enhancing platform features and reliability.

During the trial's opening days, Meta CEO Mark Zuckerberg testified about the company's motivations behind these acquisitions. He acknowledged that Instagram's superior camera features influenced the decision to acquire the platform, stating, "We were behind in mobile photos, and Instagram was better." Zuckerberg also revealed that in 2018, he considered spinning off Instagram due to antitrust concerns, recognizing the potential for future regulatory challenges.

Internal communications presented during the trial suggest that Meta viewed Instagram and WhatsApp as competitive threats. The FTC is using these documents to support its claims that Meta sought to eliminate potential competitors. Zuckerberg maintained that many of these messages were taken out of context and reflected preliminary thinking.

The trial is presided over by U.S. District Judge James Boasberg, who has noted the complexities of the case and the challenges the FTC faces in proving its claims. In a previous ruling, Judge Boasberg stated, "The Commission faces hard questions about whether its claims can hold up in the crucible of trial."

The outcome of this trial could have significant implications for merger regulations and corporate consolidation practices within the technology industry. A ruling against Meta could lead to the divestiture of Instagram and WhatsApp, potentially altering the user experience and the integration of services that consumers currently enjoy. Conversely, a ruling in favor of Meta may set a precedent for how tech giants approach mergers and acquisitions, potentially leading to increased scrutiny and regulation to ensure fair competition.

As the trial progresses, it will provide critical insights into the balance between corporate growth strategies and the need to maintain competitive markets. The proceedings are expected to last several weeks, with testimonies from key figures in the tech industry shedding light on the intricate dynamics of competition, innovation, and regulation in the digital age.