Meta secured a major legal victory, averting one of the company's biggest existential threats. U.S. Federal Judge James Boasberg ruled that the Federal Trade Commission (FTC) failed to prove Meta had a clear monopoly, thus dismissing its application.attemptThe lawsuit demands that Meta separate Instagram from WhatsApp.
Judge: The Federal Trade Commission failed to prove that Meta still holds a monopoly "now".
The lawsuit began in 2020 when the U.S. Federal Trade Commission accused Meta of stifling competition in the social media industry and harming consumers by acquiring its former rivals Instagram and WhatsApp.
However, Judge James Boasberg stated in his ruling: "Regardless of whether Meta held monopoly power in the past, the Federal Trade Commission must prove that it still holds such power. Today's court ruling finds that the Federal Trade Commission has failed to do so."
TikTok and YouTube are considered to belong to the same "product market".
The key turning point in this case lies in the definition of the market. The U.S. Federal Trade Commission attempted to define Meta's monopoly scope as narrowly defined "personal social networking" and tried to exclude the influence of TikTok and YouTube.
But the judge did not buy it, stating, "The court ultimately ruled that YouTube and TikTok belong to the same product market, and their existence prevents Meta from having a monopoly. Even excluding YouTube, including TikTok alone is enough to defeat the FTC's argument."
This echoes Mark Zuckerberg's testimony in a previous trial, where he emphasized that TikTok's rise put enormous pressure on Meta and caused its growth to "significantly slow down."
The U.S. Federal Trade Commission expressed disappointment, and Meta stated that the ruling acknowledged the current state of competition.
In response to the ruling, FTC Public Affairs Director Joe Simonson issued a statement expressing "deep disappointment" and alleging that Judge Boasberg (currently facing articles of impeachment) was biased against the Federal Trade Commission. The FTC is currently reviewing all options and has not ruled out an appeal.
A Meta spokesperson stated that the court ruling acknowledged that Meta faces "intense competition" and emphasized that its products benefit the public and businesses, reflecting the spirit of innovation in the United States.
