Meta Faces GCR Scrutiny in Landmark Antitrust Trial
The trial's outcome could have far-reaching implications for the tech industry, with potential consequences for Meta's business model and the future of social media. As the trial continues, all eyes will be on the courtroom, waiting to see if the FTC can prove its case and force Meta to make significant changes.
The US competition and consumer watchdog has alleged that Meta unlawfully acquired Instagram and WhatsApp to quash rivals, with a 2012 memo from Mark Zuckerberg discussing the importance of "neutralising" Instagram as key evidence.
The trial, FTC v Meta, kicked off in Washington, with the FTC claiming that Meta overpaid for the acquisitions, citing the memo as proof of the company's intentions to eliminate competition. Meta counters that the acquisitions improved and grew the companies, and that such acquisitions have never been found unlawful. The company argues that the acquisitions were made to enhance the user experience and increase innovation.
The trial could have significant implications for Meta, potentially forcing CEO Mark Zuckerberg to break up the company and spin off Instagram and WhatsApp. The case has also become politicized, with US President Donald Trump having lobbied Zuckerberg to have the FTC drop the case, and Trump recently firing two FTC commissioners in an effort to intimidate them. Despite this, the FTC is considered an independent regulatory agency, and the Biden administration has expressed a desire to rein in such agencies.
The outcome of the trial is uncertain, with some experts saying it will be tough to prove that the acquisitions were unlawful. The trial is seen as an uphill battle for the FTC, but the agency remains determined to prove its case and ensure that Meta does not engage in anti-competitive practices.