Mark Zuckerberg defends Meta in FTC's antitrust trial
What's the story
Meta CEO Mark Zuckerberg has taken the witness stand in a landmark antitrust trial. The case, brought by the Federal Trade Commission (FTC) in 2020, accuses Meta of monopolistic practices in the social media space. The FTC argues that Meta's purchase of Instagram (in 2012) and WhatsApp (in 2014) were moves to unfairly dominate the market. Zuckerberg was the first witness to testify.
Legal action
FTC aims to dismantle Meta's social media empire
The FTC aims to break Meta's monopoly by mandating the separation of Instagram or WhatsApp from the company. In its defense, Meta claims that the social media space is highly competitive, with the likes of TikTok, X, and YouTube being potential competitors. The trial will last two months and will be overseen by a federal court in Washington, DC.
Evidence examination
Zuckerberg's email exchanges scrutinized in trial
During the trial, the FTC pointed to a 2011 email from Zuckerberg in which he expressed concern over Instagram's rapid growth. A year later, he sent another email saying that his company was "so far behind that we don't even understand how far behind we are... I worry that it will take us too long to catch up." In response, Zuckerberg defended these emails as "relatively early" discussions about acquiring Instagram.
Acquisition dispute
Meta counters FTC's claims of overpayment
The FTC claims Meta overpaid for Instagram and WhatsApp as a way to kill competition. The tech giant acquired Instagram for $1 billion and WhatsApp for $19 billion. Meta argues that the FTC's lawsuit is "misguided" since it had initially reviewed and approved both acquisitions. The company's attorney Mark Hansen argued that "Meta acquired Instagram and WhatsApp to improve and grow them alongside Facebook."
Memo reference
FTC attorney cites Zuckerberg's memo as evidence
FTC lawyer Daniel Matheson referred to a 2012 memo from Zuckerberg discussing the importance of "neutralizing" Instagram. Matheson described this message as "a smoking gun." In contrast, Meta defended these acquisitions by stating that they enhanced consumer experience. The company's lead litigator asserted on Monday that "acquisitions to improve and grow have never been found unlawful, and they should not be found unlawful here."
Strategic alliances
Meta's financial outlook and political connections
Last year, Meta had 3.27 billion daily active users across its products. Research firm eMarketer estimated Instagram would account for over half of Meta's US advertising revenue in 2025. The company has also been courting Trump allies, from donating $1 million to Trump's inaugural fund to adding former Trump adviser Dina Powell McCormick and Ultimate Fighting Championship (UFC) boss Dana White to its board this year.
Previous stance
Zuckerberg pressed Trump to get FTC off Meta's back
In January, Meta announced it was scaling back content moderation policies that Republicans had criticized as censorship. Additionally, it agreed to pay $25 million to Donald Trump to settle a lawsuit related to the suspension of his accounts following the 2021 Capitol riot. Zuckerberg has reportedly visited the White House in recent weeks and, personally urged Trump to push for the FTC to drop its case against Meta.