In a high-stakes antitrust trial that began Monday in Washington, D.C., the Federal Trade Commission called on Meta Platform, Inc. (NASDAQ:META) to divest Instagram and WhatsApp, alleging these deals formed part of an illegal “buy or bury” strategy to monopolize social networking.
The Details: Prosecutors highlighted a 2008 email in which Meta CEO Mark Zuckerberg reportedly stated it was “better to buy than compete,” framing the Instagram purchase as a tactic to neutralize a rising competitor.
Zuckerberg testified for three hours on the trial's first day and argued that Meta's acquisitions were necessary to adapt to evolving user preferences. The Meta CEO also pointed to competition from TikTok and YouTube Shorts as evidence of a dynamic market.
Read Next: Chinese TikTok Influencers ‘Expose’ Cheap Nike, Lululemon Suppliers To Bypass Trump Tariffs
Meta's legal team emphasized that regulators originally approved the deals and that consumer behavior, such as switching to Instagram during TikTok outages, demonstrates robust competition in the market.
Former FTC Chair Lina Khan spoke out on Monday, saying the case against Meta is about “free and fair trade.”
“There’s no expiration date when it comes to the illegality of the transaction. I think there is a way in which the entire social networking ecosystem looks different today because Facebook was permitted to go out and make these acquisitions," Khan told CNBC.
The trial could result in Meta being forced to divest Instagram and WhatsApp. Zuckerberg's testimony is expected to continue on Tuesday as both sides grapple with defining the boundaries of social media competition in a rapidly shifting digital landscape.
Price Action: According to Benzinga Pro, Meta Platforms shares were down 1.95% at $521.14 at the time of publication Tuesday.
Read Next:
- Elon Musk Calls Trump Trade Advisor Peter Navarro ‘Dumber Than Sack Of Bricks,’ Defends Tesla As ‘Most American-Made Cars’
Image: Shutterstock
