Landmark antitrust trial could force Zuckerberg to sell Instagram [View all]

Source: BBC

11 hours ago


A trial in the landmark antitrust case against social media giant Meta kicks off in Washington on Monday. The US competition and consumer watchdog alleges that Meta, which already owned Facebook, bought Instagram in 2012 and WhatsApp in 2014 to eliminate competition, effectively giving itself a monopoly.

The FTC reviewed and approved those acquisitions but committed to monitor the outcomes. If the Federal Trade Commission (FTC) wins the case it could force Meta CEO Mark Zuckerberg to sell off both Instagram and WhatsApp. Meta previously said it was sure it would win and experts have told the BBC it is likely to argue that Instagram users have had a better experience since it was taken over.

"The [FTC's] argument is the acquisition of Instagram was a way of neutralizing this rising competitive threat to Facebook," says Rebecca Haw Allensworth, a professor of antitrust at Vanderbilt Law School. Ms Allensworth says Mr Zuckerberg's own words, including those from his emails, may offer the most convincing evidence at trial. "He said it's better to buy than to compete. It's hard to get more literal than that," Ms Allensworth says.

Meta, on the other hand, is likely to argue that intent is not particularly relevant in an antitrust case. "They're going to say the real question is: are consumers better off as a result of this merger?," she said. "They'll put on a lot of evidence that Instagram became what it is today because it benefited from being owned by Facebook." Mr Zuckerberg and the company's former chief operating officer Sheryl Sandberg are both expected to testify at the trial, which could run for several weeks.

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