4 days Ago By News Ghana
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/zuckerberg-defends-metas-instagram-and-whatsapp-acquisitions-in-antitrust-trial/Meta Platforms CEO Mark Zuckerberg took the stand in a Washington, D.
C., courtroom this week, defending the company’s acquisitions of Instagram and WhatsApp against allegations of anti-competitive practices.The high-profile antitrust case, brought by the U.
S. Federal Trade Commission (FTC), could force Meta to divest one or both platforms, marking one of the most significant challenges to the tech giant’s dominance in social media.The FTC argues that Meta’s purchases of Instagram in 2012 and WhatsApp in 2014 were deliberate moves to eliminate emerging competitors rather than legitimate business expansions.
Internal emails from Zuckerberg, cited by regulators, suggest concerns that Instagram could eventually surpass Facebook as the leading social network. Similarly, WhatsApp’s rapid growth as a messaging platform was seen as a potential threat before its $19 billion acquisition.Zuckerberg countered these claims, testifying that the integrations of Instagram and WhatsApp into Meta’s ecosystem benefited users without stifling competition.
He acknowledged, however, that Meta had misjudged shifting user behavior in 2018 when it prioritized friend-and-family content over public posts. “We misunderstood how social engagement online was evolving,” he said, noting that users increasingly favored private messaging over public feeds. Today, only about 20% of Facebook content and 10% of Instagram posts originate from personal connections a shift Meta attributes to broader industry trends rather than anti-competitive practices.
The FTC maintains that Meta holds a monopoly over personal social networking, with Snapchat and smaller platforms like MeWe as its only direct competitors. TikTok, YouTube, and Reddit, while dominant in interest-based content, are not considered substitutes for platforms centered on friend-and-family interactions. Yet Meta insists that TikTok’s explosive growth proves the market remains competitive.
The company pointed to a surge in Instagram and Facebook usage during TikTok’s brief U.S. outage in early 2023 as evidence of direct rivalry.
Legal experts note the FTC faces an uphill battle in convincing the court that unwinding Meta’s decade-old acquisitions would restore competition. U.S.
District Judge James Boasberg has already questioned whether regulators can prove their case, particularly given the dynamic nature of the tech industry. A ruling in favor of the FTC could have far-reaching consequences: Instagram is a cornerstone of Meta’s $117 billion annual ad business, while WhatsApp, with over 2 billion daily users, is key to the company’s push into paid messaging and e-commerce.The trial, expected to stretch into July, is part of a wider regulatory crackdown on Big Tech.
Under both the Trump and Biden administrations, U.S. agencies have pursued antitrust cases against Meta, Google, Amazon, and Apple, though securing definitive victories has proven difficult.
For Meta, the outcome could reshape its future not just financially, but as a case study in how regulators define competition in the digital age.The case also underscores a lingering tension between Silicon Valley and Washington. Even as Meta has sought to align itself with political leaders, including through policy adjustments and financial support for events like former President Trump’s inauguration, its market power remains under scrutiny.
Whether this trial will set a precedent for breaking up tech giants or reinforce the challenges of regulating them remains to be seen. News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.
gh/zuckerberg-defends-metas-instagram-and-whatsapp-acquisitions-in-antitrust-trial/.
