While we are yet to fully grasp the fate of TikTok, which President Donald Trump of the USA demanded be divested from its Chinese parent company ByteDance or face a ban in the U.S., Meta – the parent company of Instagram and WhatsApp – is facing its own legal trouble over antitrust concerns.
The U.S. Federal Trade Commission (FTC) has dragged Meta to court over issues of anti-competitive behaviour. Specifically, the FTC wants Meta to divest its ownership of Instagram and WhatsApp, the two biggest platforms in its social media empire, in an antitrust trial that could redefine the future of digital communication. Mark Zuckerberg’s Meta could be forced to sell off these platforms if it loses the lawsuit.
The FTC accuses Meta of buying Instagram and WhatsApp to eliminate competition and maintain a monopoly in the social media industry. If the court rules against Meta, it would be a historic blow to the company. Zuckerberg acquired Instagram in 2012 and WhatsApp in 2014, completing a trio that includes Facebook, and consolidating the largest tech-based social media conglomerate in the world. Although these acquisitions were approved by the FTC at the time, the current lawsuit seeks to reverse those approvals. It argues that the purchases were not made to foster innovation but to neutralise competition and dominate the market.
The FTC alleges that Meta has relied on its vast financial resources to buy out emerging competitors rather than competing with them. This pattern of behaviour reportedly dates back to 2008. The case hinges on internal communications from 2012 in which Zuckerberg reportedly expressed concerns over Instagram’s growth compared to Facebook’s, suggesting that it would be more strategic to acquire than compete. He eventually did just that, further solidifying Meta’s control over the digital ecosystem.
Meta has not denied the acquisitions but rejects the characterization of them as anti-competitive. The company describes the case as weak and out of touch with reality, arguing that platforms like TikTok, YouTube and X (formerly Twitter) offer significant competition.
During the trial, Zuckerberg defended the acquisition of Instagram by claiming it was for its camera technology, not due to its growing popularity. However, the contents of the 2012 emails appear to contradict that assertion. If the FTC wins the case, Meta may be forced to sell Instagram, WhatsApp, or both. While this might not immediately change how users experience these platforms, experts believe it would alter the dynamics of the digital market.
Digital sociologists argue that breaking up Meta’s holdings would simplify regulatory oversight, particularly in areas like content moderation, user privacy and data usage. They suggest that such a move would improve the quality of service to users by subjecting each platform to more focused scrutiny.
Concerns remain over who would buy these platforms if they are forced to be sold. If a controversial figure or entity, such as Elon Musk or a speculative investment fund, takes control of Instagram, users may abandon the platform en masse, much like the exodus that followed Musk’s acquisition of Twitter. However, if the buyer is a more discreet, non-disruptive company, users might continue to engage with the platform as they always have.
Although Meta does not provide a detailed revenue breakdown for each app, analysts estimate that Instagram alone brings in around $37 million annually, surpassing Facebook’s income. Given this, it is understandable why Meta would be keen to avoid losing control over Instagram.
The court’s decision in this trial won’t just affect Meta. It could also pave the way for similar lawsuits targeting other tech giants engaged in monopolistic practices. At a time when social media regulation is under increasing scrutiny, this case could become a precedent for future digital market reforms.
Instagram and WhatsApp, both acquired more than a decade ago, have become global social media powerhouses. The ongoing antitrust trial marks the first major test of the FTC’s resolve in the era following Trump’s presidency.
Originally filed in 2020, during Trump’s term, the lawsuit claims Meta – then still known as Facebook – purchased Instagram and WhatsApp to suppress competition and build an illegal monopoly in the social media market. The FTC’s argument is that Meta followed a strategy laid out by Zuckerberg himself in 2008: “It is better to buy than compete.” The agency claims that Facebook systematically identified, monitored and acquired potential rivals that it saw as significant threats to its dominance.
Antitrust laws in the United States are enforced by both the FTC’s Bureau of Competition and the Antitrust Division of the Department of Justice. These agencies coordinate before opening any investigation, with the Department of Justice handling all criminal enforcement of antitrust laws. The FTC’s Bureau of Competition is tasked with upholding the nation’s antitrust framework, which serves as a pillar of free market capitalism.
These laws are designed to promote consumer interests, uphold market freedom, and ensure lower prices and broader choices. The Federal Trade Commission Act and the Clayton Act, both enacted in 1914, authorise the commission to regulate anti-competitive mergers and business practices. They target monopolistic behaviour, attempts to monopolise and conspiracies that restrain trade. The Bureau of Competition investigates potential violations and pursues legal remedies either in federal court or before the FTC’s administrative judges. The Bureau also advises policymakers on competition issues and works with international competition agencies to encourage consistency and fairness in global markets.
WhatsApp, officially known as WhatsApp Messenger, is an American social media, instant messaging and voice-over-IP (VoIP) service owned by Meta. It allows users to send text, voice, and video messages, make voice and video calls, and share media such as images, documents, locations and other content. Accessible via mobile and desktop applications, WhatsApp requires a valid mobile number for registration.
In January 2018, WhatsApp launched a standalone app called WhatsApp Business, designed for small enterprises to communicate with customers. The original service was developed by WhatsApp Inc. in Mountain View, California, before being acquired by Facebook in February 2014 for $19.3 billion. By 2015, WhatsApp had become the world’s most popular messaging app. As of February 2020, it boasted over two billion users globally, with an additional 200 million monthly registrations reported four years later. By 2016, WhatsApp had emerged as the primary mode of online communication across the Americas, South Asia, and much of Europe and Africa.
Instagram is a U.S.-based social media platform focused on photo and short-form video sharing. Also owned by Meta, it enables users to upload media, apply filters, and organize content using hashtags and geotags. Posts can be made public or shared with approved followers. Users can explore content by tag or location, follow accounts, and like or comment on photos.
Originally known for its square photo format of 640 pixels – meant to align with the iPhone’s display – Instagram increased the image resolution to 1080 pixels in 2015. It later introduced features such as messaging, multiple image posts and Instagram Stories, modeled after Snapchat’s disappearing content feed. As of January 2019, the Stories feature was being used by 500 million people daily.
Instagram was launched for iOS in October 2010 by Kevin Systrom and Mike Krieger. The app gained one million users within two months, 10 million within a year and crossed the one billion mark by June 2018. Facebook acquired the platform in April 2012 for $1 billion in cash and stock. Instagram later became available on Android, desktop, Fire OS and Windows 10.
Despite its massive success, Instagram has not been free from controversy. It has faced criticism over its impact on teenage mental health, policy shifts, censorship allegations and the presence of inappropriate content. Nonetheless, it remains one of the most influential platforms of the digital era.
The unfolding legal drama between Meta and the FTC could shape the direction of the tech industry for years to come. Whether or not Meta is forced to divest Instagram and WhatsApp, the implications of this trial will reverberate throughout Silicon Valley, government halls and user communities worldwide.
