Today, D.C. District Court Judge James Boasberg ruled that Meta did not violate antitrust law when it acquired Instagram and WhatsApp in the case FTC v. Meta. The Federal Trade Commission had argued that Meta — the parent company of Facebook — used those acquisitions to maintain its dominance in social networking by neutralizing emerging competitive threats.
The following can be attributed to John Bergmayer, Legal Director at Public Knowledge:
“We are disappointed by today’s ruling rejecting the Federal Trade Commission’s challenge to Meta’s acquisitions of Instagram and WhatsApp. For years, Public Knowledge has warned that Meta’s ‘buy-or-bury’ strategy undermines competition and deprives users of real alternatives to Facebook.
“Social networks depend on powerful ‘network effects’ – people gravitate to the services their friends and communities already use. That makes it extraordinarily difficult for new entrants to gain traction, even when they offer better features like more privacy. When a dominant platform like Meta buys up rising social networks that may be able to challenge its market position, it closes off one of the few realistic pathways for meaningful competition.
“The court’s opinion reflects a view of the market that is at odds with how digital-platform power operates today. Meta systematically acquired emerging competitors precisely because direct, head-to-head competition threatened its dominance. Meta’s consolidation strategy deprived consumers of innovative services and prevented the development of a truly competitive social-networking ecosystem.
“Without meaningful competition, dominant digital platforms will continue to exercise outsized power over speech, commerce, and user choice. We urge policymakers to strengthen antitrust enforcement and adopt pro-competitive policies, including interoperability, to ensure users have real choice.”
Members of the media may contact Communications Director Shiva Stella with inquiries, interview requests, or to join the Public Knowledge press list at shiva@publicknowledge.org or 405-249-9435.