{"id":19135,"date":"2025-04-13T15:14:42","date_gmt":"2025-04-13T15:14:42","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/u-s-prepares-to-challenge-metas-social-media-dominance\/"},"modified":"2025-04-13T15:14:42","modified_gmt":"2025-04-13T15:14:42","slug":"u-s-prepares-to-challenge-metas-social-media-dominance","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/u-s-prepares-to-challenge-metas-social-media-dominance\/","title":{"rendered":"U.S. Prepares to Challenge Meta\u2019s Social Media Dominance"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Soon after Mark Zuckerberg <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2007\/08\/31\/business\/worldbusiness\/31iht-facebook.5.7340806.html\" title=\"\">co-founded Facebook in his Harvard dorm room<\/a> in 2004, the social network skyrocketed in popularity. Roughly a decade later, the company experienced another round of explosive growth after buying its smaller rivals <a class=\"css-yywogo\" href=\"https:\/\/archive.nytimes.com\/dealbook.nytimes.com\/2012\/04\/09\/facebook-buys-instagram-for-1-billion\/\" title=\"\">Instagram<\/a> and <a class=\"css-yywogo\" href=\"https:\/\/archive.nytimes.com\/dealbook.nytimes.com\/2014\/10\/28\/facebooks-21-8-billion-acquisition-lost-138-million-last-year\/\" title=\"\">WhatsApp<\/a>, cementing its place in social media.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">On Monday, <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/04\/07\/us\/politics\/trump-judge-boasberg-kavanaugh.html\" title=\"\">Judge James Boasberg<\/a> of the U.S. District Court for the District of Columbia will begin considering a landmark monopoly case involving the company \u2014 now called Meta \u2014 that hinges on a novel legal question: Did it break the law to stay dominant by acquiring the start-ups that stood in its way?<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The case \u2014 <a class=\"css-yywogo\" href=\"https:\/\/www.govinfo.gov\/app\/details\/USCOURTS-dcd-1_20-cv-03590\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">Federal Trade Commission v. Meta Platforms<\/a> \u2014 will for the first time try to stretch theories of U.S. antitrust law to include what regulators are calling a \u201cbuy or bury\u201d strategy. Meta broke the law by acquiring nascent competitors to maintain its monopoly in social networking, the F.T.C. argues. Regulators are seeking to force Meta to divest Instagram and WhatsApp.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Meta has countered that it faces ample competition in social media from TikTok, Snap, Reddit and LinkedIn, and that regulators approved the acquisitions at the time. The company also hasn\u2019t given up on settling the case: Early this month, Mr. Zuckerberg was at the White House <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/04\/02\/technology\/mark-zuckerberg-trump-meta-antitrust.html\" title=\"\">to try to persuade the Trump administration<\/a> to avert a trial.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The outcome of what is expected to be a multiweek trial, the first major tech case prosecuted by the Trump administration, could reshape the U.S. antitrust landscape as companies face intense scrutiny over mergers and acquisitions. A government victory could also have ripple effects for Silicon Valley, where start-ups bank on lucrative acquisitions by bigger companies for payouts.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Still, the F.T.C. faces an uphill battle to prove its case, legal experts said. The government\u2019s legal argument hinges on showing that Meta would not be as dominant, and would not have stayed as dominant, if it hadn\u2019t acquired Instagram and WhatsApp \u2014 a hypothetical situation that is difficult to prove because many factors have played into the company\u2019s growth.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThis is a critical test case for whether the antitrust laws can be used to unwind mergers designed to eliminate upstart competition,\u201d said Gene Kimmelman, a former senior official in the antitrust division of the Department of Justice. \u201cA win for the government would give consumers more choices and opportunities to switch across social media platforms without having to be on Facebook.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The lawsuit has bipartisan support and is part of the most aggressive trustbusting effort by federal regulators since the Gilded Age, with Google, Meta, Amazon and Apple facing questions over their power to control the ways consumers shop, find information and communicate.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The Justice Department last year <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/12\/03\/technology\/google-search-antitrust-judge.html\" title=\"\">won an antitrust suit against Google<\/a> for monopolizing internet search, and a trial to determine how to remedy that monopoly is slated to start on April 21. Google is also <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/11\/25\/technology\/google-advertising-monopoly.html\" title=\"\">awaiting a judge\u2019s decision<\/a> in a separate trial over claims that it illegally squashed competition in the ad tech market.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The D.O.J. has also sued <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/03\/21\/technology\/apple-doj-lawsuit-antitrust.html\" title=\"\">Apple over claims<\/a> that its tightly knit system of devices and software makes it challenging for consumers to leave. And the F.T.C. has <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2023\/09\/26\/technology\/ftc-amazon.html\" title=\"\">sued Amazon<\/a>, accusing it of illegally protecting a monopoly in online retail. Those cases are expected to go to trial next year.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The tech industry is closely watching the Meta trial, one of the first major signals of how aggressively President Trump may rein in the most powerful tech companies. The case originated under his first administration, before a handoff in 2021 to the F.T.C. chair <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/11\/05\/technology\/election-2024-ftc-lina-khan.html\" title=\"\">Lina Khan,<\/a> a Biden appointee who drew attention for her quest to break up tech monopolies.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Now <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/12\/10\/technology\/trump-ftc-andrew-ferguson.html\" title=\"\">Andrew Ferguson,<\/a> Mr. Trump\u2019s choice to lead the agency, has taken the baton. He has warned against concentrated power held by Meta. He is also motivated by a shared Republican view that tech platforms have censored content, particularly conservative voices.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cWe don\u2019t intend to take our foot off the gas,\u201d Mr. Ferguson said <a class=\"css-yywogo\" href=\"https:\/\/www.bloomberg.com\/news\/videos\/2025-03-17\/ftc-chair-puts-big-tech-on-notice-video\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">in an interview<\/a> last month with Bloomberg.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-4\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">For Meta, even the idea of hiving off Instagram and WhatsApp is alarming. The company bought Instagram for $1 billion in 2012 and WhatsApp for $19 billion in 2014. At the time of the deals, the apps were small \u2014 Instagram had just 30 million users and 13 employees, while WhatsApp had 450 million users and 50 employees. Since then, both have become critical to Meta, with faster growth and engagement by users than Facebook.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The trial is expected to feature about seven hours of testimony from Mr. Zuckerberg, who will be a star witness, along with Meta\u2019s former chief operating officer, Sheryl Sandberg, and the founders of Instagram and WhatsApp.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Meta has an army of the most expensive and experienced litigators arguing its defense, led by Mark C. Hansen, a partner at Kellogg, Hansen, Todd, Figel &amp; Frederick. Meta plans to argue that the fast rise of the video-sharing site TikTok, in particular, shows healthy competition in the market.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cWe are confident that the evidence at trial will show that the acquisitions of Instagram and WhatsApp have been good for competition and consumers,\u201d said Chris Sgro, a spokesman for Meta. \u201cThe commission is wrongly continuing to assert that no deal is ever truly final, and businesses can be punished for innovating.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The F.T.C. first sued Meta in December 2020, alongside a similar suit brought by 46 states. The agency\u2019s legal argument hinges on Section 2 of the Sherman Antitrust Act of 1890, which specifies that it is illegal to maintain a monopoly by using anticompetitive practices \u2014 in this case, acquiring companies at a premium as a strategy to eliminate them as competitors.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-5\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">To support its case, the F.T.C. plans to present a 2008 email from Mr. Zuckerberg saying, \u201cIt is better to buy than compete\u201d and a 2012 memo he wrote saying that his motivation for buying Instagram was \u201cneutral[izing] a potential competitor.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Judge Boasberg, who has been locked in a contentious court battle with the Trump administration over its use of a powerful wartime statute to summarily deport Venezuelan migrants, will decide the case. During a recent pretrial tutorial, the judge said he had never had a personal Facebook or Instagram account.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Judge Boasberg rejected the F.T.C.\u2019s initial case in June 2021, saying the agency needed to provide stronger definitions for the social media market and how Meta had come to monopolize it. He accepted <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2022\/01\/11\/technology\/facebook-antitrust-ftc.html?searchResultPosition=17\" title=\"\">a refiled version of the case in January 2022<\/a>, but cautioned that it was far from a slam dunk.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In a ruling against Meta\u2019s motion to dismiss the case last year, Judge Boasberg said the F.T.C. \u201cfaces hard questions about whether its claims can hold up in the crucible of trial.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cIndeed, its positions at times strain this country\u2019s creaking antitrust precedents to their limits,\u201d he added.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-6\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Legal experts say the case will be challenging to prove because it hinges on determining intentions by executives more than a decade ago, during a very different internet age. The deals were approved by regulators at the time, and years of integration between the apps mean they share many of the same internal systems and data \u2014 making a breakup challenging.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cIt\u2019s asking a judge to decide if Meta tried to kill competition or got lucky and made a good bet,\u201d said Jennifer Huddleston, a senior fellow at the Cato Institute, a think tank. \u201cIt\u2019s assuming a counterfactual we can\u2019t know.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2025\/04\/13\/technology\/meta-ftc-trial-whatsapp-instagram.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Soon after Mark Zuckerberg co-founded Facebook in his Harvard dorm room in 2004, the social network skyrocketed in popularity. Roughly<\/p>\n","protected":false},"author":1,"featured_media":19136,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[451,5698,1216,4292,123,119,3071,5697,120,4293,4636,5989,450,121,219,118,1122],"class_list":["post-19135","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-acquisitions-and-divestitures","tag-andrew-n","tag-antitrust-laws-and-competition-issues","tag-boasberg","tag-computers-and-the-internet","tag-facebook-inc","tag-federal-trade-commission","tag-ferguson","tag-instagram-inc","tag-james-e","tag-khan","tag-lina","tag-mergers","tag-meta-platforms-inc","tag-regulation-and-deregulation-of-industry","tag-social-media","tag-whatsapp-inc"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>U.S. Prepares to Challenge Meta\u2019s Social Media Dominance - World News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/site.itshrt.com\/worldnews\/u-s-prepares-to-challenge-metas-social-media-dominance\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"U.S. Prepares to Challenge Meta\u2019s Social Media Dominance - World News\" \/>\n<meta property=\"og:description\" content=\"Soon after Mark Zuckerberg co-founded Facebook in his Harvard dorm room in 2004, the social network skyrocketed in popularity. 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