The giant social media power house, META, stands antitrust trial on Monday, facing the US government over charges of using its market power to eliminate competition by acquiring Instagram and Whatsapp before they become competitors. The case could see the owner of Facebook forced to divest Instagram and Whatsapp which has now grown into a global powerhouse since buyout.
The trial in a Washington federal court crushes the hopes of Meta boss Mark Zuckerberg that the return of Donald Trump to the White House would see the government let up on the enforcement of antitrust law against Big Tech.
The New York Times and The Wall Street Journal reported that Zuckerberg was recently spotted at the White House on April 2, pressing Donald Trump to resolve the FTC case. At the same time, Zuckerberg has made every possible effort to forge an alliance with Trump, through private dinners, public appearances and changes to Meta’s platform.
Former Labor Secretary Robert Reich, a staunch critic of both men, wrote on X, “Remember how Mark Zuckerberg started cozying up to Trump as Meta donated $1 million to his inauguration? Well now Zuckerberg is trying to cash in — reportedly lobbying Trump to settle the FTC’s antitrust lawsuit against Meta. This is why you always follow the money.”
The agency pursuing the case, the Federal Trade Commission, is a powerful US consumer protection agency that has historically operated with a remarkable amount of independence.
META Antitrust Lawsuit
The case against Meta was originally filed in December 2020, during the first Trump administration. The suit was thrown out six months later, but the FTC again under the leadership of President Joe Biden’s appointees came back with a stronger complaint, and the US district judge assigned to the case, Judge James Boasberg, rejected Meta’s bids to dismiss the suit.
Boasberg will also be presiding over the trial and ruling for or against Meta, since there is no jury. His presence adds another layer of intrigue, since he also ruled against Trump’s use of the Alien Enemies Act to deport alleged Venezuelan gang members.
The Meta lawsuit represents just one of five major tech antitrust actions recently initiated by the US government.
Google is also facing two cases and was found guilty of search-market dominance abuse last August, while Apple and Amazon on the other hand are also heading to court.
“Regulators should be supporting American innovation, rather than seeking to break up a great American company and further advantaging China on critical issues like AI,” a company spokesperson said.
At trial, Meta will also point to what it says “every 17-year-old in the world knows:” that Facebook, Instagram and WhatsApp “compete with Chinese-owned TikTok, YouTube, X, iMessage and many others.”
