Antitrust regulators want Facebook, Instagram, and WhatsApp to block and unfollow each other.
What happened: A U.S. Federal Trade Commission (FTC) antitrust court case against Meta began yesterday after years of preparation.
- The FTC wants to see Meta’s purchase of Instagram and WhatsApp undone, and the apps spun off into separate companies.
Why it matters: Losing Instagram (which generates around half of its U.S. ad revenue, according to one estimate) and WhatsApp (which has the most active users of any Meta product) would be a stunning blow for the tech giant.
Catch-up: The FTC argues that Meta dominates the “personal social networking services” market, a position Meta achieved by stifling competition through its “killer acquisitions” of Instagram and WhatsApp.
- According to the FTC, Meta has made it impossible for other companies to enter the space and compete.
Yes, but: Meta argues that its users spend most of their time on its products passively consuming content, not communicating with friends and family — and in the mindless scrolling business, it faces intense competition from TikTok, YouTube, Snapchat, and X.
What’s next: The trial is expected to last around two months, and even if the FTC wins, it will still have to prove that forcing Meta to divest Instagram and WhatsApp would restore competition.—TS