Landmark antitrust trial could force Zuckerberg to sell Instagram

A trial against Meta begins in Washington on Monday.

The US competition watchdog claims Meta bought Instagram in 2012 and WhatsApp in 2014 to eliminate competition. This effectively gave Meta a monopoly.

The FTC approved these acquisitions but promised to monitor their effects. If the FTC wins, it could force CEO Mark Zuckerberg to sell Instagram and WhatsApp.

Meta believes it will win the case. Experts say they may argue that Instagram users have benefited since the acquisition.

Rebecca Haw Allensworth, an antitrust professor, explains that the FTC argues Instagram's purchase neutralized competition for Facebook.

Allensworth notes that Zuckerberg's own words may be key evidence at trial. He stated it's better to buy than compete, which is quite direct.

Meta will likely argue that intent is not crucial in this case. They will focus on whether consumers are better off after the merger.

Zuckerberg and former COO Sheryl Sandberg are expected to testify during the trial, which may last several weeks.

The case, FTC v Meta, was filed during Donald Trump's first term but risks becoming politicized now.

Zuckerberg has reportedly lobbied Trump to drop the case, according to the Wall Street Journal. When asked about this, Meta avoided confirming but stated: "The FTC's lawsuits against Meta defy reality."

A spokesperson added that over ten years after approval, this action suggests no deal is ever final.

Relations between Zuckerberg and Trump were tense after Trump was banned from Meta platforms post-Capitol riot. However, their relationship has improved somewhat since then.

Meta contributed $1 million to Trump's inaugural fund and appointed UFC boss Dana White to its board in January.

In March, Trump fired two FTC commissioners who were Democrats. This move raised concerns about political intimidation within the commission.

Commissioners Rebecca Kelly Slaughter and Alvaro Bedoya expressed alarm over recent reports of Zuckerberg's lobbying efforts. Bedoya hopes for no political interference in the case.

The FTC did not respond when asked for comment by BBC News. Chair Ferguson said he would follow lawful orders if directed by Trump regarding lawsuits like this one against Meta.

Ferguson also mentioned he would be surprised if such a situation arose at all.

The FTC plays a vital role as an antitrust watchdog. It has returned millions of dollars to fraud victims and passed laws banning junk fees and subscription traps.

However, as the trial starts, there are concerns about independent regulatory agencies being restrained by the current administration. Ferguson recently stated that independent bodies might not be good for democracy.

As FTC v Meta begins, another major antitrust case—USA v Google—is moving into its remedies phase. The DOJ won a significant ruling last summer stating Google holds a monopoly in online search with around 90% market share.

Last month, the DOJ reiterated its demand for breaking up Google's search monopoly made during Biden’s administration.

Experts believe proving the FTC's case against Meta will be more challenging than Google's situation due to greater competition in personal network services compared to online search markets.

Laura Phillips-Sawyer from the University of Georgia says it will be tough for the FTC: "They have a long road before considering divestiture of Instagram or WhatsApp."

Meta responded by stating that evidence at trial will show how Instagram competes with platforms like TikTok and YouTube among others.