Meta could be left without Instagram and WhatsApp: Zuckerberg goes on the riskiest trial in the company's history
The US Federal Trade Commission (FTC) has taken a serious look at Meta - Mark Zuckerberg's company, which owns Facebook, Instagram and WhatsApp.
Here's What We Know
The top US regulator is demanding the sale of Instagram and WhatsApp, accusing Meta of trying to "stifle competition" and create a monopoly in the social networking market. The trial has already started in Washington and will run until July 2025.
The lawsuit centres on old internal correspondence and Meta's strategy. Allegedly Zuckerberg saw the purchase of Instagram as a way to "neutralise a potential threat" and WhatsApp as a dangerous competitor that could grow into a full-fledged social network. The FTC argues that these deals were not needed for the sake of progress, but to neutralise competitors and strengthen Meta's influence in the market.
Zuckerberg has already testified in court, where he insisted that the deals were solely to improve the user experience, and that competition from TikTok, YouTube and others is only now intensifying.
Meta's director of legal affairs, Jennifer Newstead, commented on the FTC's lawsuit this way:
It's absurd that the FTC is trying to break up a major US company at a time when the (Trump) administration is trying to save China's TikTok.
If the FTC wins, Meta will have to say goodbye to two of its biggest assets. This wouldn't just be a high-profile precedent - it could reshape the entire map of the US digital economy, especially since similar cases have already been filed against Amazon, Apple and Google.
Flashback
Meta bought Instagram in 2012 for $1 billion and WhatsApp in 2014 for $19 billion. It seemed like a bold move at the time, but today there have been complaints about these deals.
Source: Reuters
