Meta stands before the court for its most significant trial to date because it faces the U.S. Federal Trade Commission (FTC) in an antitrust case that will define the future of the company. The six-year investigation into Meta’s Instagram and WhatsApp acquisitions will be heard in court starting Monday because it examines potential anti-competitive motives behind these deals.
The FTC claims Meta implemented a strategic approach called “buy or bury” by purchasing Instagram to eliminate competitive threats. The upcoming trial spanning almost two months will include testimony from Meta CEO Mark Zuckerberg and former COO Sheryl Sandberg and Instagram chief Adam Mosseri. The central evidence in this case comes from a 2012 internal email written by Zuckerberg which shows that Instagram was acquired to stop new market competition.
The FTC may require Meta to separate ownership of WhatsApp and Instagram if they demonstrate that Meta broke antitrust regulations. A decision to divest Instagram would severely impact Meta because the platform generates substantial revenue from advertising.
The case’s outcome has the potential to transform the technology industry because Meta claims the lawsuit fails to understand modern market competition.
