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Meta Platforms Inc. (NASDAQ: META) is at the center of a pivotal antitrust trial initiated by the Federal Trade Commission (FTC), challenging its acquisitions of Instagram and WhatsApp. The FTC contends that these moves were part of a deliberate strategy to suppress competition in the social media market.​‍

Background: The FTC's Allegations

The FTC's lawsuit, filed in December 2020 and supported by 46 states, argues that Meta's acquisitions of Instagram in 2012 for $1 billion and WhatsApp in 2014 for $19 billion were aimed at maintaining its monopoly in the personal social networking market. The agency seeks to compel Meta to divest these platforms, asserting that their continued ownership stifles competition and innovation .​

Former FTC Chair Lina Khan has characterized Meta's approach as a "buy-or-bury" tactic, suggesting the company chose to acquire potential rivals rather than compete with them. This strategy, according to the FTC, has hindered the emergence of new competitors and limited consumer choices .​

Meta's Defense

Meta refutes the FTC's claims, arguing that the social media landscape is highly competitive, with platforms like TikTok, YouTube, and Snapchat posing significant challenges. The company maintains that its acquisitions have benefited consumers by integrating features and improving services across its platforms .​

In its pretrial brief, Meta emphasized that the FTC must demonstrate not only that Meta holds a dominant position but also that its actions have harmed consumers and competition. The company asserts that the FTC's case lacks sufficient evidence to meet this burden of proof .​

Trial Proceedings and Potential Outcomes

The trial, presided over by U.S. District Judge James Boasberg, commenced on April 14, 2025, in Washington, D.C. Key figures expected to testify include Meta CEO Mark Zuckerberg, former COO Sheryl Sandberg, and Instagram co-founder Kevin Systrom .​

If the FTC prevails, Meta could be compelled to divest Instagram and WhatsApp, a move that would significantly impact its business model. Notably, Instagram alone is projected to generate over $37 billion in advertising revenue this year, accounting for more than half of Meta's U.S. ad income .​‍

Broader Implications

This trial represents a critical test of modern antitrust enforcement in the technology sector. A ruling against Meta could set a precedent for how regulators address market power and competition in digital markets, potentially influencing future actions against other tech giants .​

The outcome may also prompt a reevaluation of merger and acquisition strategies within the industry, encouraging companies to prioritize innovation over consolidation.​

Meta's Market Performance

As the trial unfolds, Meta's stock (NASDAQ: META) closed at $529.75 on April 14, 2025, reflecting a slight decline of 2.54% from the previous close. The company's market capitalization stands at approximately $1.45 trillion, with a price-to-earnings ratio of 26.07 and earnings per share of $21.20.​

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The FTC's antitrust trial against Meta marks a significant moment in the ongoing debate over Big Tech's influence and the enforcement of competition laws. As proceedings continue, the tech industry and regulatory bodies alike will be closely monitoring the case's developments and potential ramifications.

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