On Monday, Meta Platforms CEO Mark Zuckerberg took the stand in a pivotal trial in Washington, D.C., where U.S. antitrust regulators are challenging the company’s acquisitions of Instagram and WhatsApp. The Federal Trade Commission (FTC) alleges that Meta spent billions on these purchases to eliminate competition and maintain its dominance in the social media landscape.
The FTC is seeking to compel Meta to either restructure or divest its ownership of Instagram and WhatsApp, a move that tests the promises made by former President Donald Trump to tackle the influence of Big Tech. This legal battle poses a significant threat to Meta, which, by some estimates, derives approximately half of its U.S. advertising revenue from Instagram.
Dressed in a dark suit and a light blue tie, Zuckerberg appeared composed as he answered questions, aiming to counter the allegations that Meta’s acquisitions were intended to stifle competition among social media platforms where users connect with friends and family. He stressed that while sharing among friends and family was a priority for the apps, it was not the sole focus.
Zuckerberg pointed out that a decision made in 2018 to prioritize content shared by users’ friends over other types of posts did not account for a shift in user behavior, where individuals began sharing content through private messages rather than public posts. “I think we misunderstood how social engagement online was evolving,” he admitted, noting that now only about 20% of content on Facebook and 10% on Instagram is generated by users’ friends, as opposed to accounts they follow based on shared interests.
The FTC has highlighted emails in which Zuckerberg suggested acquiring Instagram to mitigate the threat of a potential competitor and expressed concerns that WhatsApp could evolve into a social networking platform. In response, Meta contends that its acquisitions of Instagram in 2012 and WhatsApp in 2014 have ultimately benefited users. The company argues that Zuckerberg’s previous comments are outdated, especially in light of the fierce competition from platforms like TikTok, YouTube, and Apple’s messaging app.
Central to the case will be how users engage with social media and which platforms they view as interchangeable. Meta plans to argue that the surge in traffic to Instagram and Facebook during TikTok’s temporary shutdown in the U.S. in January demonstrates direct competition. The FTC claims that Meta monopolizes platforms for sharing content with friends and family, with its primary competitors being Snap’s Snapchat and the smaller privacy-focused app MeWe. The FTC contends that platforms where users share content based on interests, such as TikTok, YouTube, and Reddit, are not interchangeable with Meta’s offerings.
U.S. District Judge James Boasberg noted in a ruling last November that the FTC faces challenging questions regarding the viability of its claims in court. The trial is expected to extend into July, and if the FTC prevails, it will need to demonstrate that actions like forcing Meta to sell Instagram or WhatsApp would restore competition.
Losing Instagram could have dire consequences for Meta’s financial health. Although Meta does not disclose revenue figures for individual apps, advertising research firm eMarketer projected that Instagram would generate approximately $37.13 billion in revenue this year, accounting for just over half of Meta’s U.S. ad revenue. Instagram also boasts the highest revenue per user of any social platform, surpassing even Facebook. While WhatsApp has contributed minimally to Meta’s overall revenue, it is the most widely used app in terms of daily users and is increasingly focusing on monetization through business messaging tools, which Zuckerberg believes will drive future growth.
This case is part of a broader crackdown on Big Tech that began during Trump’s first term. Since his election, Meta has made efforts to align with Trump, including revising content moderation policies that Republicans deemed as censorship and donating $1 million to his inauguration. Zuckerberg has also made several visits to the White House in recent weeks.
Other major tech companies, including Amazon, Apple, and Alphabet’s Google, are also facing antitrust lawsuits from U.S. regulators. While many tech firms have sought to align with Trump by rolling back diversity initiatives and engaging directly with the White House, this shift in strategy has not led to a reduction in antitrust scrutiny.
