Meta faces historic antitrust trial that could force it to break off Instagram, WhatsApp
San Francisco, Apr 14 (AP): Meta Platforms Inc. faces a historic antitrust trial beginning Monday that could force the tech giant to break off Instagram and WhatsApp, startups it bought more than a decade ago that have since grown into social media powerhouses.
The looming antitrust trial will be the first big test of President Donald Trump's Federal Trade Commission's ability to challenge Big Tech. The lawsuit was filed against Meta — then called Facebook — in 2020, during Trump's first term. It claims the company bought Instagram and WhatsApp to squash competition and establish an illegal monopoly in the social media market.
Meta, the FTC argues, has maintained a monopoly by pursuing CEO Mark Zuckerberg's strategy, "expressed in 2008: It is better to buy than compete.' True to that maxim, Facebook has systematically tracked potential rivals and acquired companies that it viewed as serious competitive threats."
Facebook also enacted policies designed to make it difficult for smaller rivals to enter the market and “neutralize perceived competitive threats,” the FTC says in its complaint, just as the world shifted its attention to mobile devices from desktop computers.
“Unable to maintain its monopoly by fairly competing, the company's executives addressed the existential threat by buying up new innovators that were succeeding where Facebook failed,” the FTC says.
Facebook bought Instagram — then a scrappy photo-sharing app with no ads and a small cult following — in 2012. The $1 billion cash and stock purchase price was eye-popping at the time, though the deal's value fell to $750 million after Facebook's stock price dipped following its initial public offering in May 2012.
Instagram was the first company Facebook bought and kept running as a separate app. Up until then, Facebook was known for smaller “acqui-hires” — a type of popular Silicon Valley deal in which a company purchases a startup as a way to hire its talented workers, then shuts the acquired company down. Two years later, it did it again with the messaging app WhatsApp, which it purchased for $22 billion.
WhatsApp and Instagram helped Facebook move its business from desktop computers to mobile devices, and to remain popular with younger generations as rivals like Snapchat (which it also tried, but failed, to buy) and TikTok emerged. However, the FTC has a narrow definition of Meta's competitive market, excluding companies like TikTok, YouTube and Apple's messaging service from being considered rivals to Instagram and WhatsApp.
“The FTC already has the difficult task, whether it's looking at 10 years ago or five years ago or today, of trying to define what is the market we're talking about in a sufficiently narrow way that it can show Meta has a ton of power in that market,” said Paul Swanson, an antitrust attorney for the law firm Holland & Hart. “And I do think that challenge has gotten harder as the years have gone by and we see more and more potential competitors in social media spaces.”
Meta, meanwhile, says the FTC's lawsuit “defies reality.”
“The evidence at trial will show what every 17-year-old in the world knows: Instagram, Facebook and WhatsApp compete with Chinese-owned TikTok, YouTube, X, iMessage and many others. More than 10 years after the FTC reviewed and cleared our acquisitions, the Commission's action in this case sends the message that no deal is ever truly final. 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," the company said in a statement.
In a filing last week, Meta also stressed that the FTC “must prove that Meta has monopoly power in its claimed relevant market now, not at some time in the past." This, experts say, could also prove challenging since more competitors have emerged in the social media space in the years since the company bought WhatsApp and Instagram.
Meta's fate will be decided by U.S. District Judge James Boasberg, who late last year denied Meta's request for a summary judgment and ruled that the case must go to trial.
Boasberg “seems to be skeptical” of the FTC's narrow market definition in his rulings to date, Swanson said. He added that the judge also said it is a “fact question," which means he is open to hearing what the FTC and its experts have to say to define that narrow market.
While the FTC may face an uphill battle in proving its case, the stakes are high for Meta, whose advertising business could be cut in half if it's forced to spin off Instagram.
“Instagram is now Meta's biggest money maker in the U.S., its most lucrative market, where the app accounts for 50.5% of the company's ad revenues in 2025. Instagram has also been picking up the slack for Facebook on the user front, particularly among young people, for a long time,” said Emarketer analyst Jasmine Enberg. “The trial also comes as Meta is trying to bring back OG Facebook in an effort to appeal to Gen Z and younger users as they join social media. Social media usage is far more fragmented today than it was in 2012 when Facebook acquired Instagram, and Facebook isn't where the cool college kids hang out anymore. Meta needs Instagram to continue growing, especially as more advertisers think Instagram-first with their Meta budgets.”
But Meta isn't the only technology company in the sights of federal antitrust regulators, Google and Amazon face their own cases. The remedy phase of Google's case is scheduled to begin on April 21. A federal judge declared the search giant an illegal monopoly last August.
“A big theme here is we are applying 19th-century laws to 21st-century markets. And I think it's an open question whether the judgment developments to antitrust law can keep up with markets as they are changing — these fluid and dynamic tech markets in particular,” Swanson said. “And this will be a case that speaks directly to that.”
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T20 WC star Samson named ICC Men's Player of the Month for March
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Dubai (PTI): India opener Sanju Samson was on Tuesday named ICC Men's Player of the Month for March, capping a stellar run that saw him play a defining role in the team's triumphant T20 World Cup campaign.
Samson did not get to play in the early part of the tournament but was the standout performer in the big games towards the end and helped India retain the title.
His latest honour also extends a unique streak, with players from different countries winning the award over the past five months including South Africa's Simon Harmer, Australia's Mitchell Starc, New Zealand's Daryl Mitchell and Pakistan's Sahibzada Farhan.
"Winning the ICC Player of the Month award is an incredible feeling, especially as it comes during what has been the most unforgettable phase of my cricketing journey. Playing a part in India's triumph at the Men's T20 World Cup was truly a dream realised, and it took some time for the magnitude of that moment to fully sink in," Samson said.
"This is an exciting era for Indian cricket, with immense talent across the board. I feel grateful for the opportunities I've received, and for the trust and support from my team-mates and coaching staff that have allowed me to perform at my best."
Not a regular part of the playing XI in the initial stages of the tournament, Samson was eventually called up for India's must-win Super 8 fixtures. After starting off with 24 against Zimbabwe, he picked form and didn't look back.
The opener missed out on a century against the West Indies by just three runs, but his attacking 97 not out set up India's spot in the semifinal.
A blistering 89 against England at the Wankhede helped India to 253 for 7, and the target proved elusive for the English who missed out by seven runs on March 5.
An equally amazing 89 was churned out during India's successful title defence in Ahmedabad, securing a 96-run win.
In the three crucial T20Is he was a part of in March, Samson notched up 275 runs at an astonishing average of 137.50 and a stunning strike rate of 199.27.
This is the first time that Samson has secured an ICC Men's Player of the Month honour.
New Zealand captain Melie Kerr won the women's honour for the third time, after an outstanding series against Zimbabwe and South Africa.
Taking over the white-ball teams from Sophie Devine, Kerr's captaincy seemed to have brought out the best in her with both the ball and the bat. In the Zimbabwe ODI series, she managed to snap 16 wickets in just three matches, including her career-best figures of 7/34.
Additionally, she also contributed with the bat, being the third highest run-scorer in the ODIs, scoring 140 runs across three games with an average of 46.67 in the counting month.
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