Meta, the company led by Mark Zuckerberg, has urged a federal judge to dismiss the FTC’s significant antitrust lawsuit. This case could potentially result in the breakup of the tech giant during the ongoing trial.
On Thursday, the FTC concluded its opening arguments, asserting that Meta unlawfully dominates the social media app market that depends on family and friend networks.
When court resumes on Monday, Meta plans to continue its defense and reiterate its late Thursday contention that the FTC mischaracterized the market.
Meta argues that it faces substantial competition from platforms like TikTok, YouTube, and Elon Musk’s X.
A spokesperson for Meta commented after the five-week trial, stating, “The FTC hasn’t met the legal standards necessary under antitrust law. Just to clarify, Instagram competes with TikTok, YouTube, X, and various other applications.”
The FTC’s representatives chose not to comment on the matter.
This marks another attempt by Meta to sideline FTC disputes before they reach the courtroom.
Reports indicate that Zuckerberg attempted to settle the lawsuit in early April before the trial commenced.
Exclusively covered earlier, it was mentioned that Meta reached out to the Media Research Center, a notable conservative critic of Big Tech policies.
According to the federal government, Meta’s acquisition of Instagram and WhatsApp is part of a “buy or bury” tactic designed to eliminate threats to its dominance.
The FTC is hoping that District Judge James Boasberg will compel Zuckerberg to divest two of these apps.
This motion sheds light on Meta’s defense strategy, though there’s no certainty that Boasberg will respond to this request. He has allowed the case to progress according to schedule.
The filing asserts, “Meta’s acquisition of Instagram led to significant growth that has greatly benefited U.S. consumers.”
The trial, expected to last ten weeks, is set to conclude in June, with final briefs from both the FTC and Meta following afterward. Boasberg will then assess whether Meta indeed holds a monopoly and, if so, determine the necessary remedy.
FTC attorneys are heavily utilizing internal communications and documents exchanged between Zuckerberg and others to bolster their case.
This includes a 2012 email in which Zuckerberg mentioned that acquiring Instagram would “neutralize competitors.”
Other potentially damaging evidence has surfaced, including a 2018 email exchange where an unnamed Instagram executive cautioned that “fake engagement could reach 40%.”
Earlier testimony from Instagram co-founder Kevin Systrom revealed that Zuckerberg perceived the app as a “threat” after its acquisition, feeling it lacked the resources needed to succeed.
