Meta Antitrust Case Opens with Zuckerberg's Testimony
18 April 2025 · Uncategorized ·
Source: · https://finance.technews.tw/2025/04/15/meta-antitrust-case-opens/
On April 14th, Mark Zuckerberg, CEO and co-founder of Facebook (祖克柏), testified in a landmark U.S. antitrust trial against his company, Meta Platforms Inc., which is accused of abusing its market power by acquiring Instagram and WhatsApp before they became significant competitors.
According to reports from Agence France-Presse and Reuters, FTC lawyers argued that the predecessor of Meta/Facebook acquired potential threats rather than fostering competition. Zuckerberg calmly responded to questions while wearing a dark suit with a light blue tie, seeking to rebut allegations that his company eliminated competition by acquiring these companies ten years ago.
Lawyers presented internal Facebook emails from 2011 and 2012 as evidence. The 2011 email warned about Instagram's rising popularity on smartphones and its potential to easily replicate the social media network’s offerings, while a subsequent email in 2012 suggested that maintaining Instagram’s status quo would suffice without further product improvements. Zuckerberg downplayed these documents, stating they were preliminary discussions preceding plans for acquisition. The outcome of this case could potentially force Meta to divest itself of Instagram and WhatsApp, which have become globally popular applications since their acquisitions.
FTC lawyer Daniel Matheson opened the trial with a pointed statement: "They decided competition was too hard; buying out competitors is easier than competing with them." Meta’s lawyers countered that it's not illegal for American companies to acquire businesses as part of efforts to improve or expand operations, which they claim Facebook did.
The core issue in this case centers on the acquisitions of Instagram and WhatsApp by Facebook: the $1 billion purchase of Instagram in 2012 when it was a small but promising photo-sharing app (now boasting over two billion active users), and the acquisition of WhatsApp for $19 billion in 2014, driven by Zuckerberg’s concern that it could evolve into another social network or be acquired by competitors.
Meta's defense lawyers argue that significant investments from Meta enabled Instagram and WhatsApp to grow as they did, emphasizing that their applications are free despite facing intense competition. The FTC also points out the decline in user experience due to excessive advertising and product changes as potential indicators of monopolistic power held by Meta.
A key point hinges on how the FTC defines Facebook's market position; the U.S. government contends that apps for connecting friends and family hold a dominant position, excluding video platforms like TikTok or YouTube. However, Meta disputes this definition.
Lawyer Brendan Benedict wrote on Substack: "The broader Meta can define its relevant markets to be, the more likely it is to win against FTC lawsuits."
(Translator: Li Peishan; Image source: Flickr/Anthony Quintano CC BY 2.0)
According to reports from Agence France-Presse and Reuters, FTC lawyers argued that the predecessor of Meta/Facebook acquired potential threats rather than fostering competition. Zuckerberg calmly responded to questions while wearing a dark suit with a light blue tie, seeking to rebut allegations that his company eliminated competition by acquiring these companies ten years ago.
Lawyers presented internal Facebook emails from 2011 and 2012 as evidence. The 2011 email warned about Instagram's rising popularity on smartphones and its potential to easily replicate the social media network’s offerings, while a subsequent email in 2012 suggested that maintaining Instagram’s status quo would suffice without further product improvements. Zuckerberg downplayed these documents, stating they were preliminary discussions preceding plans for acquisition. The outcome of this case could potentially force Meta to divest itself of Instagram and WhatsApp, which have become globally popular applications since their acquisitions.
FTC lawyer Daniel Matheson opened the trial with a pointed statement: "They decided competition was too hard; buying out competitors is easier than competing with them." Meta’s lawyers countered that it's not illegal for American companies to acquire businesses as part of efforts to improve or expand operations, which they claim Facebook did.
The core issue in this case centers on the acquisitions of Instagram and WhatsApp by Facebook: the $1 billion purchase of Instagram in 2012 when it was a small but promising photo-sharing app (now boasting over two billion active users), and the acquisition of WhatsApp for $19 billion in 2014, driven by Zuckerberg’s concern that it could evolve into another social network or be acquired by competitors.
Meta's defense lawyers argue that significant investments from Meta enabled Instagram and WhatsApp to grow as they did, emphasizing that their applications are free despite facing intense competition. The FTC also points out the decline in user experience due to excessive advertising and product changes as potential indicators of monopolistic power held by Meta.
A key point hinges on how the FTC defines Facebook's market position; the U.S. government contends that apps for connecting friends and family hold a dominant position, excluding video platforms like TikTok or YouTube. However, Meta disputes this definition.
Lawyer Brendan Benedict wrote on Substack: "The broader Meta can define its relevant markets to be, the more likely it is to win against FTC lawsuits."
(Translator: Li Peishan; Image source: Flickr/Anthony Quintano CC BY 2.0)