Meta owner forced to sell Instagram and WhatsApp in court.

Meta Platforms, the owner of Facebook, has received a lawsuit in Washington over allegations of creating an illegal monopoly in social media by acquiring Instagram and WhatsApp. American antitrust authorities are trying to undo these deals. This was reported by Reuters, referring to 'Glavcom'.

According to the publication, the U.S. Federal Trade Commission states that these acquisitions, made more than 10 years ago, were aimed at eliminating new competitors threatening Facebook's status as the leading social media platform for users. The lawsuit was filed in 2020 during Donald Trump's presidency.

The Federal Trade Commission (FTC) wants to force Meta to restructure its business or sell parts of it, including Instagram and WhatsApp.

Meta's General Counsel, Jennifer Newstead, considers this lawsuit weak and an obstacle to technology investments. She stated that the FTC's attempt to split up a 'large American company' is absurd. 'It is absurd that the FTC is trying to break up a large American company at a Time when the administration is trying to save Chinese TikTok,' Newstead wrote.

Threat to Meta and fulfilling promises

This case poses a significant threat to Meta, as reportedly less than half of the company's ad revenue in the U.S. comes from Instagram. At the same time, it is the first confirmation of how decisively the new Trump administration will fight against large tech companies.

Meta has actively sought to maintain relationships with Trump, defending itself from content moderation policies that were perceived by Republicans as censorship. Additionally, the company made a $1 million donation to Trump's inauguration, and Mark Zuckerberg visited the White House in recent weeks.

FTC representative Joe Simons stated that the commission is ready for a trial. He also added that the FTC has some of the best lawyers in the country working around the clock.

Evidence and accusations

Zuckerberg is expected to testify during the trial, where he will be asked about emails in which he proposed acquiring the Instagram app to eliminate a potential competitor to Facebook. He will also be asked about concerns regarding turning the encrypted messaging service WhatsApp into a social network.

Meta claims in court documents that the acquisitions of Instagram in 2012 and WhatsApp in 2014 are significantly beneficial to users. The company also points to competition from other platforms, such as TikTok, YouTube, and apps from Apple, which undermine Zuckerberg's previous statements.

The main issue in this trial will be how users spend time on social media and whether they see them as interchangeable platforms. Meta will try to demonstrate the growth of Instagram and Facebook usage during a temporary TikTok ban in the U.S. in January.

Remember, Trump stated that a deal with TikTok is still possible. U.S. President Donald Trump said that a deal to transfer TikTok under the control of American companies is not off the table, despite delays in negotiations.